OFFICE  PRACTICE 
AND  BUSINESS   PROCEDURE 


By 
FLORENCE  E.  McGILL,  B.A.,  B.C.S. 

JULIA   RICHMAX   HIGH   SCHOOL 
THE    CITY   OF    NEW    YORK 


THE   GREGG   PUBLISHING   COMPANY 

NEW    YORK  CHICAGO  BOSTON  SAN    FRANCISCO  LONDON 


COPYRIGHT,  1922,  BY 
THE   GREGG   PUBLISHING   COMPANY 


5S-F-3 


Printed  in  the  United  States  of  America 


PREFACE 

THIS  book  is  an  elementary  treatise  on  office  practice  and 
business  procedure.  It  is  designed  as  an  introductory  text- 
book for  immature  students  who  are  unacquainted  with  the 
organization  and  management  of  large  business  houses.  Simple 
in  style,  it  will  enable  the  student  to  acquaint  himself  with  the 
best  methods  of  handling  business  and  commercial  papers 
and  office  appliances.  The  aim  is,  to  give  a  regular  business 
office  training  by  presenting  practical  problems  in  the  classroom 
such  as  a  junior  clerk  will  be  expected  to  understand. 

In  a  business  office  an  employee  is  not  only  required  to 
understand  the  theory  of  his  assigned  tasks,  but  he  must  know 
how  to  work  out  that  theory  in  practice.  If  he  knew  all  the 
necessary  requirements  for  filing  a  letter  and  had  never  actually 
filed  a  letter  in  a  folder  in  a  drawer  of  a  filing  cabinet,  his  theo- 
retical knowledge  of  filing  would  be  of  little  value  to  him  in 
business. 

Students  using  this  book  become  acquainted  with  the  dif- 
ferent features  of  office  routine.  In  other  words,  they  are 
continually  in  a  "business  atmosphere."  The  efficient  office 
assistant  must  be  thoroughly  equipped  with  a  knowledge  of 
the  "machinery"  of  a  modern  business  office.  When  he  ac- 
cepts his  first  business  position  he  must  be  confident  of  his 
ability  to  perform  the  assigned  task  in  an  intelligent  and  effi- 
cient manner  without  supervision.  In  the  opinion  of  the 
author  the  ideal  method  is  to  "learn  to  do  by  doing."  The 
plan  of  organizing  the  class  into  an  office  force  gives  the  stu- 
dent an  opportunity  to  acquaint  himself  with  modern  business 
requirements  and,  as  far  as  possible,  to  get  his  practice  in  a 
real  business  atmosphere. 

5026G6 


PREFACE 

The  book  is  graded  to  meet  the  needs  of  students  in  the 
junior  high  school  and  in  the  first,  second,  and  third  terms  of 
the  senior  high  school.  Every  assignment  contained  in  this 
book  has  been  worked  out  in  practical  form  by  students  in  the 
Julia  Richman  High  School,  the  City  of  New  York,  in  regular 
class  recitations. 

Grateful  acknowledgments  are  made  to  the  many  teachers 
and  members  of  business  houses  who  have  made  this  work 
possible.  The  author  desires  to  mention  Dr.  John  T.  Nichol- 
son, District  Superintendent  of  Schools,  and  Dr.  Albert  G. 
Belding,  Director  of  Commercial  Subjects  in  High  Schools,  the 
City  of  New  York;  Mr.  Thaddeus  Wilkerson  of  the  Burroughs 
Adding  Machine  Company;  Miss  Mary  F.  Cahill,  Miss  Sadie 
Krupp,  Miss  Anna  Hamill,  and  Miss  Elizabeth  F.  Duffy  of 
the  Julia  Richman  High  School;  and,  especially,  to  acknowl- 
edge her  indebtedness  to  Dr.  Michael  H.  Lucey,  Principal 
of  the  Julia  Richman  High  School. 

The  author  and  publisher  are  indebted  to  the  Remington 
Typewriter  Company,  the  Dalton  Adding  and  Calculating 
Machine  Sales  Company,  the  Library  Bureau,  the  Yawman 
and  Erbe  Mfg.  Co.,  the  Wales  Adding  Machine  Company, 
the  A.  B.  Dick  Company,  the  National  Blank  Book  Com- 
pany, the  Postage  Meter  Company  and  the  New  York  Tele- 
phone Company  for  supplying  illustrative  material. 


CONTENTS 

CHAPTER  ONE 

PAGE 

Introduction I 

CHAPTER  TWO 

RAPID    CALCULATION    AND    COMMERCIAL   MATHEMATICS 

Horizontal  and  Vertical  Addition.  Group  Method  of  Vertical 
Addition.  Proof  of  Addition.  "  Casting  Out  9'$."  Multiplication. 
Interest 7 

CHAPTER  THREE 

CORRELATION    OF    MERCANTILE    ACCOUNTS    WITH    OFFICE    PRACTICE 

Financial  Statements.  Information  Statement  or  Financial 
Statement.  Loss  and  Gain  Statement.  Balance  Sheet.  Trans- 
action. Expense.  Business  Transactions.  Inventory.  Dry 
Goods  Invoices ic 

CHAPTER   FOUR 

BANKING   AND    BUSINESS    PROCEDURE 

Commercial  and  Non-Commercial  Banks.  Savings  Banks. 
Difference  Between  a  Commercial  and  a  Savings  Bank.  Difference 
Between  a  Bank  Note  and  a  Bank  Check.  Federal  Reserve  Banks. 
Postal  Savings  System.  Loan  and  Trust  Companies.  The  Numer- 
ical Transit  System.  The  Clearing  House.  Checks.  Stop  Pay- 
ment on  Checks.  Indorsement  of  a  Check.  Certified  Checks. 
How  to  Make  Out  a  Check  and  Check  Stub.  A  Promissory  Note. 
Protection  of  Checks.  Exercises.  Depositors'  Ledger  Kept  by 
the  Bank.  Reconciliation  of  Bank  Balance.  The  Payroll.  Trade 
Acceptance 61 


CONTENTS 
CHAPTER   FIVE 

SALES    AND    PURCHASES 

PAGE 

Merchandise  Sales.  Local  Map  of  Your  Town  or  City.  Inter- 
borough  Map  of  the  City  of  New  York,  Borough  of  Manhattan. 
Salesmen's  Daily  Report  to  the  Home  Office  While  En  Route. 
Daily  Sales.  Merchandise  Purchases 104 

CHAPTER   SIX 

THE    TELEPHONE 

How  to  Use  the  Telephone.  How  to  Call  a  Number  on  the  Tele- 
phone. Important  Points  Concerning  the  General  Telephone 
Directory,  the  Classified:  and  the  Suburban  Directory.  Special 
Information  Concerning  the  Use  of  the  New  York  City  Telephone 
Directory.  Reference  Books.  Who's  Who  in  America.  City  or 
Town  Directory 115 

CHAPTER   SEVEN 

THE    TYPEWRITER 

Position  at  Machine.  How  to  Begin.  WTprds  of  High  Frequency. 
Capital  Letters.  Numerals.  International  Rules  for  Correcting 
Copy.  Speed  Tests.  The  Mechanical  Arrangement  of  a  Busi- 
ness Letter.  The  Parts  of  a  Business  Letter.  Proper  Margins 
Important.  Paragraphs  Relieve  Monotony.  How  to  Make 
Duplicate  or  Carbon  Copies  of  Invoices,  Bills,  or  Letters.  The 
Mimeograph.  How  to  Typewrite  a  Wax  Stencil.  The  Derma- 
type  Stencil.  Directions  for  Cleaning  and  Filing  Dermatype 
Stencil  for  Future  Use.  The  Use  of  the  Mimeograph  Machine. 
Sales  Letter  Advertising  Sanitary  Drinking  Cups 137 

CHAPTER  EIGHT 

INDEX    AND    FILING 

Indexing.  Alphabetizing.  Filing.  Alphabetic  Filing.  Numeric 
Filing.  Geographic  Filing.  Subject  or  Occupational  Filing.  The 
Shannon  File.  The  Loose  Sheet  System  or  Flat  Box  File  System. 


CONTENTS 

PAGE- 

The  Automatic  Index  System  of  Filing.  To  File  Under  the  Ten 
Division  Automatic  System.  To  File  Under  the  Twenty  Division 
Automatic  System.  Cross  Reference  and  Follow  Up.  The  Use  of 
Tabs  and  Signals.  Employee's  Record  Cards.  Real  Estate. 
Removal  of  Material  from  Files.  Copies  of  Blank  Forms.  Card 
Index  Filing 183 

CHAPTER   NINE 

POST   OFFICE    AND   TELEGRAPH 

Incoming  Mail.  Outgoing  Mail.  Metered  Mail.  Information 
from  the  Postal  Laws  and  Regulations  of  the  United  States. 
Telegrams.  Mechanical  Devices.  The  Addressograph 218 

CHAPTER  TEN 

THE    STORY    OF   THE    ADDING   MACHINE 

Supplementary  Exercises  for  Class  Use.  Some  Uses  for  Adding  and 
Calculating  Machines.  The  Si-Keyboard  Non-Listing,  Calcu- 
lating and  Adding  Machine.  Ten-Key  Adding-Calculating 
Machine.  Vertical  and  Horizontal  Adding.  Adding  Fractions. 
Common  Fractions.  Multiplication  on  the  8i-Key  Calculating 
Machine  (Non-Listing).  ID-Key  Listing  Machine.  Subtraction 
on  the  8i-Key  Machine  (Non-Listing).  Supplementary  Exercises. 
Bookkeeping- Problems.  Listing  and  Non- Listing  Machines. 
Accounting  and  Business  Practice,  First  Term.  Calculations 
and  Accounts.  Telephone  Directory.  Suburban  Telephone 
Directory.  Bullinger's  Post  Office,  Express,  and  Freight  Guide. 
New  York  City  Directory.  Who's  Who  in  America.  Blue 
Book.  Roget's  Thesaurus.  The  World  Almanac.  Vertical 
File.  Incoming  Mail.  Outgoing  Mail.  Commercial  Abbrevia- 
tions and  General  Business  Terms 241 


OFFICE   PRACTICE 

AND 

BUSINESS   PROCEDURE 


OFFICE   PRACTICE 

AND 

BUSINESS   PROCEDURE 

CHAPTER  ONE 
INTRODUCTION 

As  transportation  systems,  steam  and  electricity,  have  im- 
proved living  conditions  and  as  business  has  progressed  from 
the  age  of  the  artisan,  working  in  his  home,  to  that  of  the  large 
industrial  corporations  employing,  oftentimes,  thousands  of 
persons  who  contribute  to  the  manufacture  and  output  of  a 
product,  so  commercial  activities  have  also  increased.  Im- 
proved conditions  of  the  employee  and  the  adoption  of  modern 
methods  and  appliances  in  the  offices  of  large  business  houses 
have  placed  business  upon  a  plane  of  efficiency  that  was  un- 
dreamed of  half  a  century  ago.  The  introduction  of  labor-saving 
machinery  and  devices  has  not  only  raised  the  standard  of  in- 
telligence among  office  help,  but  it  has,  to  a  large  degree,  revolu- 
tionized business  methods.  Every  operation  of  an  employee, 
whether  in  bookkeeping,  correspondence,  or  at  the  cashier's 
desk,  is  marked  by  accuracy  and  skill.  The  old-fashioned  method 
of  performing  every  process  with  pen  or  pencil  is  a  relic  of  the 
past,  and  clerks  today  are  trained,  not  to  be  expert  penmen,  but 
to  operate  the  many  office  appliances  that  are  now  in  use  in 
nearly  every  business  office. 

An  advanced  step  in  progress  was  made  with  the  invention  of 
the  typewriter  which  has  changed  correspondence  methods  in 
business  offices  from  the  laborious  writing  by  hand  to  the 


2  OFFICE   PRACTICE 

writing  machine.  This  change  has  necessitated  the  employment 
of  typists  and  stenographers.  The  use  of  the  typewriter  has 
made  possible  the  making  of  duplicate  records,  thus  preparing 
the  way  for  the  adoption  of  the  modern  form  of  filing.  No 
argument  is  needed  today  to  convince  a  business  man  of  the 
necessity  of  keeping  typed  copies  of  all  correspondence. 

Calculating,  billing,  and  bookkeeping  machines  have  changed 
conditions  from  that  of  the  old  style  bookkeeper,  who  carried, 
largely  in  his  mind,  the  calculations  and  records  of  the  office. 
These  modern  devices  enable  large  institutions  and  manufactur- 
ing concerns  to  handle  an  enormous  volume  of  accounts.  Calcu- 
lating machines  have  lessened  the  physical  labor  of  office  em- 
ployees. These  machines  always  give  accurate  results  with  an 
incredible  saving  of  time.  They  also  furnish  prompt  and  de- 
pendable information  which  is  available  at  any  time.  They 
eliminate  mistakes,  erasures,  duplications,  and  omissions.  They 
give  administrative  and  high  salaried  clerks  more  time  for  other 
important  duties. 

The  Filing  Department  of  a  modern  business  systematically 
preserves  all  correspondence  and  copies  of  business  records  of  all 
kinds.  Today  the  filing  department  is  on  an  equal  basis  with  the 
accounting  department. 

Sales  managers  and  business  executives  who  direct  selling 
campaigns  must  employ  some  system  of  checking  the  fields 
covered  by  members  of  the  sales  force.  Total  returns  of  sales 
while  en  route,  are  often  used  for  the  sake  of  comparison.  Dis- 
tances from  town  to  town  must  be  known  so  that  railroad  fares 
may  be  checked  up.  Usually  railroad  maps  are  employed  on 
which  routes  of  railroads  connecting  towns  and  interurban 
trolley  systems  are  indicated.  The  towns  are  classified  as  indus- 
trial, agricultural,  or  suburban. 

The  age  of  the  bound  book  in  accounting  is  slowly  giving 
way  to  that  of  the  loose-leaf  system  and  filing  cards.  The 
courts  have  passed  upon  the  legality  of  the  loose-leaf  system, 
and  it  is  now  accepted  as  legal  evidence  in  case  of  litigation. 


INTRODUCTION  3 

The  machine  written  ledger  page,  the  posting  of  debit  and 
credit  items,  and  the  computing  of  balances  automatically, 
are  much  more  simple  than  the  old-fashioned  hand-written 
ledger  page. 

Stamps  may  now  be  affixed  to  envelopes  and  the  envelopes 
sealed  by  means  of  machines.  When  a  company  desires  to 
mail  two  thousand  or  more  identical  pieces  of  mail  a  special 
permit  may  be  obtained  from  the  post  office  which  grants  per- 
mission to  send  the  mail  without  affixing  postage  to  each  in- 
dividual piece. 

Large  business  concerns  that  send  out  monthly  state- 
ments and  other  pieces  of  mail  at  first  class  postage  rates, 
may  have  a  cancelling  machine  similar  to  the  one  used  in  the 
post  office.  When  employing  this  method  they  use  a  d'e 
which  contains  their  permit  number  and  an  indicator  which 
automatically  records  the  number  of  pieces  of  mailable  matter 
passing  through  the  machine. 

Business  houses  are  usually  divided  into  several  principal 
departments,  such  as  the  administrative,  sales,  production, 
accounting,  credit  and  purchasing,  the  stenographic  and  typing, 
and  the  filing  departments. 

A  competent  office  employee  is  one  who  is  an  expert  in  his 
own  particular  type  of  work.  He  knows  how  to  perform  the 
duties  required  of  him  and  why  this  should  be  done.  Many 
of  the  large  corporations  maintain  schools  for  the  instruction 
of-  new  employees.  In  some  companies  instructors  are  en- 
gaged who  give  new  employees  instructions  in  the  routine  of 
the  office.  These  employees  are  then  assigned  to  practical 
work. 

Students  should,  however,  get  this  sort  of  training  in  the 
classroom  before  accepting  a  position,  and  thereby  become 
accustomed  to  the  "business  atmosphere"  into  which  they 
hope  to  be  employed. 

Each  member  of  an  office  practice  class  must  be  impressed 
with  the  responsibility  of  accuracy,  honesty,  and  a  thorough 


AISLE 


AISLE 


AISLE 


ss 


6  OFFICE   PRACTICE 

understanding  of  office  routine.  He  must  possess  a  knowledge 
of  correct  business  English  and  of  business  methods,  and  must 
have  a  fund  of  general  information  on  business  subjects. 

In  modern  offices  flat  top  desks  are  generally  used,  and 
may  be  arranged  somewhat  as  shown  on  pages  4  and  .5. 

This  arrangement  sustains  the  interest  of  the  worker  in  his 
duties  and  allows  an  executive  to  supervise  the  entire  office. 

An  executive  or  a  clerk  should  keep  his  desk  neat  and  orderly. 
Scattered  papers  indicate  that  he  has  not  caught  up  with  the 
day's  work,  and  can  give  no  thought  to  problems  of  tomorrow. 
A  disorderly  desk  also  gives  an  unbusiness-like  impression  to  a 
prospective  customer  who  may  call  for  a  conference. 


CHAPTER  TWO 
RAPID  CALCULATION  AND  COMMERCIAL  MATHEMATICS 

EVERY  business  man  finds  himself  confronted  with  mathe- 
matical problems.  "  Figuring  out  the  way  to  do  it,"  is  a  business 
expression  which  means  that  in  every  move  a  man  makes  in  the 
conduct  of  his  business  he  must  deal  with  quantities  and  their 
numerical  relations.  It  is  necessary  for  him  to  " figure  correctly" 
in  order  to  be  successful.  The  reason  many  businesses  fail  is 
because  the  owners  often  rely  upon  guess  work  in  their  estimates. 

The  innumerable  mathematical  computations  common  to 
everyday  business  may  be  performed  easily  and  accurately  by 
the  use  of  short  methods,  and  the  results  may  often  be  obtained 
without  the  aid  of  pen  or  pencil.  Business  men  require  clerks 
to  be  skillful  in  handling  numerical  computations  that  will 
insure  rapidity  and  accuracy.  The  examples  which  follow  are 
designed  to  test  the  student's  skill  in  calculation. 

Horizontal  and  Vertical  Addition 

Add  horizontally  and  vertically  the  following  sales.  Find  the 
total  sales  of  each  department  and  the  total  sales  of  all  depart- 
ments. 

SUMMARY  OF  MONTHLY  SALES 


1920 

Clothing 

Dress  Goods 

Gloves 

Hats 

Total  of  all 
Departments 

Jan  
Feb.. 

#16,427.65 
14.062.  4S 

$11,428.50 

Q,q8c  6s 

$2,148.  75 

•2,r4.2  7O 

£4,472.60 

C.'JQO  6O 

March  
April  

17,857.60 
18,852.60 

8,492.90 
12,198.50 

4,679.50 
3»I79-30 

4»552.90 
6,563.20 

Totals.  .  .  . 

7] 


OFFICE    PRACTICE 


Verify  the  above  by  finding  results  on  the  adding  machine. 


1921 

Suits  and  Dresses 

Silks  and 

Velvets 

Shoes 

Jan 

#4 

568 

7^2 

7  C  4- 

$97 

?  4.6 

•  64 

4- 

$  7  1  8  4.  6 

c  2 

=  (a) 

Feb  

'           T 

784 

/  j 

93  8 

1  /  3     » 

•56  + 

9 

J    T   w- 

484 

•  7  2 

1 

/     J     U    T1 

6743 

•  j  * 
.  8  2 

\a/ 

March.  .  , 

3 

742 

8  5  6 

•93  + 

78 

3  42 

•  5  i 

4- 

34785 

.67 

=  (c) 

April  

487 

3  S  2 

•7i  + 

7 

849 

•  7  3 

+ 

4976 

.84 

=  (d) 

May.... 

•     7 

896 

43  i 

•45  + 

98 

43  2 

•  4  i 

4- 

973 

.69 

=  (e) 

June 

Q  7  4 

829 

.16  + 

8 

c  7  q 

^    -5 

4^ 

2  8  4.  Q 

7  3 

=  (0 

July  .  .  . 

J     1     T* 

83 

496 

•83  + 

2 

j  /  7 
984 

.     28 

+ 

^          T*    7 

784 

•58 

\*  / 

=  (g) 

(h)  +  (i)  +  (j)  =  (k) 

NOTE:  The  sum  of  (h),  (i),  and  (j)  should  equal  the  sum  of 
(a)  to  (g)  —  the  total  sales,  or  (k). 

Verify  all  results  by  adding  this  problem  on  the  cal- 
culating machine. 

Group  Method  of  Vertical  Addition 

EXAMPLE:  To  illustrate  the  addition  of  two  columns  at  once,  add 
84  the  units  and  tens  (23)  of  the  first  figures  to  the 

69  tens  or  (70)  of  the  next  figure,  and  then  add  the 

76  unit  figure  (6)  thus:  23  +  70  +  6  =  99.    To  this 

23  sum  add  60  +  9  +  80  +  4  =     Total  of  252. 


252 


Using  this  method,  add  the  following  problems: 

82  34  78  86  97  56  39 

96  28  46  72  84  81  54 

78  73  97  39  73  69  87 

46  29  43  58  43  78  93 

Prove  the  vertical  addition  by  adding  downward. 


RAPID   CALCULATION  9 

EXAMPLE:   To  illustrate  the  addition  of  three  columns  at  once, 
437  add  to  243   the  hundreds  figure   (500)   then   the 

384  units  and  tens  figures  as  243+500+97  =  840+400+84  = 
297  1324,  etc. 

726 
484 
597 
243 


3168 

,  Using  this  method,  add  the  following  problems: 
567  349  756  973  841 


484 

284 

296 

172 

476 

397 

439 

493 

379 

438 

232 

373 

372 

246 

354 

H3 

242 

156 

128 

178 

488 

187 

783 

376 

273 

579 

365 

516 

459 

292 

Following  are  combinations  of  units  figures  that  make  10 
and  20: 

7896467657 
2214334131 
i  319322 


5 

6 

9 

7 

8 

8 

7 

6 

8 

9 

5 

3 

i 

2 

2 

3 

4 

4 

5 

3 

7 

2 

6 

2 

7 

9 

9 

9 

7 

8 

3 

9 

4 

9 

3 

— 

— 

1 

— 

— 

7 

8 

9 

7 

6 

8 

7 

6 

7 

7 

4 

4 

2 

4 

5 

3 

5 

6 

9 

7 

9 

8 

9 

9 

9 

9 

8 

8 

4 

6 

In  all  cases  of  counting  the  following  key  numbers  should 
be   used.     On   these   key   numbers   the   units   figure   is   given. 


io  OFFICE   PRACTICE 

After  the  units  figure  io  is  reached,  the  tens  figure  must  be 
added  as  the  units  figures  simply  are  repeated.  Counting  by 
25s  from  2,  the  key  is  units  figures  2,  4,  6,  8,  io,  thus,  in  count- 
ing by  2's  beginning  with  2  to  100,  we  have: 


2 

12 

22 

32 

42 

52 

62 

72 

82 

92 

102 

4 

14 

24 

34 

44 

54 

64 

74 

84 

94 

104 

6 

16 

26 

36 

46 

56 

66 

76 

86 

96 

106 

8 

18 

28 

38 

48 

58 

68 

78 

88 

98 

1  08 

IO 

20 

30 

40 

50 

60 

70 

80 

90 

IOO 

no 

Key  number  by  4*5  is  4,  8,  2,  6,  o  beginning  with  4 

"  4's  is  3,  7,  i,  5,  9  "3 

"  4's  is  2,  6,  o,  4,  8  2 

"  4's  is  i,  5,9,  3,  7  I 

"  s's  is  5,  o  beginning  with  5 
"        "5'sis4,9  "4 

"         "        "  5's  is  3,  8  "  "3 

"        "  5's  is  2,  7  "  "2 

"        "   S'sisi,6  "  "  i 

"        "  6's  is  i,  7,  3,  9,  5  beginning  with  I 

"  6's  is  2,  8,  4,  o,  6  " — 2 

"  6's  is  3,  9,  5,  i,  7  "—3 

"  6's  is  4,  o,  6,  2,  8  —4 

"        "       "  6's  is  5,  1,7.  3,9          r          "—5 

"  6's  is  6,  2,  8,  4,  o  —6 

"  8's  beginning  with  i  is  i,  9,  7,  5,  3 

"  8's  "    2  is  2,  o.  8,  6,  4 

"  8's          "  "    3  is  3,  i,  9,  7,  5 

"  8's  "     4  is  4,  2,  o,  8,  6 

"         "        "  8's          "  "    5  is  5,  3,  i,  9-  7 

"        "  8's  "    6  is  6,  4,  2,  o,  8 

"  8's          "  "    7  is  7,  5,  3,  i,  9 

"  8's  ;    8  is  8,  6,  4,  2,  o 

Count,  beginning  with  i,  to  the  number  itself  in  each  case, 
and  count  from  the  beginning  unit  figure  to  100. 

To  find  the  sum  of  two  fractions  having  one  for  the  numerator 
take  the  sum  of  the  denominators  for  the  numerator  of  the 
answer  and  the  product  of  the  denominators  for  the  denomina- 
tor of  the  answer,  as,  1/2  +  1/6  =  8/12. 


RAPID  CALCULATION  11 

Find  the  new  denominator  and  new  numerator  in  each  case. 

1/2  +  1/6=       1/3+1/6=       1/2+1/8=       1/4  +  1/3=  1/7  +  1/6  = 

1/3+1/2=       1/7  +  1/3=       1/8  +  1/2=       1/5  +  1/4=  1/9  +  1/3  = 

i/5  +  i/3=       1/2  +  1/7=       1/9  +  1/2=  "     1/7  +  1/5=  1/9  +  1/4  = 

1/3+1/8=       1/7  +  1/2=       1/8  +  1/3=       i/5  +  i/6=  1/9  +  1/5  = 

1/9  +  1/6=       1/7  +  1/6=       1/6  +  1/4=       1/9  +  1/7=  1/8  +  1/4  = 

1/6  +  1/5=       1/8  +  1/9=       1/8  +  1/5=       i/3+i/7=  1/6  +  1/8  = 
1/7  +  1/4=       1/8  +  1/7=       1/7  +  1/5=       1/8  +  1/9  = 


Use  2,  3,  4,  5,  6,  7,  8,  or  9  for  numerators  of  these  factors. 
In  each  case  take  the  sum  of  the  denominators  and  multiply 
by  the  numerator,  as,  2/3+2/7  =  20/21. 

The  denominator  of  the  answer  will  be  the  product  of  the 
denominators. 

The  complement  of  a  number  is  the  difference  between  the 
given  number  and  10,  or  some  power  of  10.  For  example,  the 
complement  of  8  is  2,  the  complement  of  75  is  25,  the  com- 
plement of  850  is  150. 

Find  the  complements  of  the  following: 

6  2  85  96  246  753 

4  7  75  58  397  947 

5  8  64  71  846  576 
3            9            88            94            989            649 

This  method  is  used  in  subtraction  on  adding  and  calculating 
machines. 

Proof    of   Addition 

4673 
2483 
4267 
5624 


17=  sum  of  first       column 
23       =      "     "  second       " 
i  8          !=";''  third 
15  =      "     "  fourth        " 

i  7047 


12  OFFICE   PRACTICE 

"Casting  out  Q'S" 

The  method  of  casting  out  9's  is  sometimes  used  as  a  proof 
of  the  accuracy  of  columnar  addition.  Find  the  sum  of  the 
digits  added  horizontally  and  divide  the  total  by  9,  or  cast  out 
the  nines  by  grouping  figures  the  sum  of  which  equals  nine. 
According  to  the  method  used  by  John  H.  Walsh  in  his  text- 
book, "Business  Arithmetic,"  we  could  find  the  "excess"  of 
9's  in  3460875  by  adding  3+4+6+8+7  +  5  or  33  and  dividing 
by  9  which  leaves  a  remainder  of  6.  He  also  recommends  the 
method  of  rejecting  9  when  the  sum  of  two  or  more  digits  is  9. 


98753214=3  1 
76543216  =  7 
97591246=7 
89765  381=2 
73954769=5 


24-7-9=2  nines  and  6  remainder 


436607826  =33-^9  =3  nines  and  6  remainder — 

As  we  have  6  as  the  remainder  for  the  addends  and  6  as  the 
remainder  for  the  answer,  we  have  proved  the  problem  by  cast- 
ing out  the  9's. 

Add  the  following  and  prove  by  casting  out  the  9's: 

i.  47897684  2.  84967854 

3  2076483  97345632 

82478978  727645  3  i 

68764376  97463172 

98765432  63543781 

97865387 


3.  784695439 
946135846 

473983467 
537281973 
175837468 
359721837 


RAPID  CALCULATION 

4.  2345327124369 
7314962823124 
6~  781397214813 
6734218938126 
3214327568772 
4523264658176 
9231682345681 
2769437876256 
4152368327219 
1872976198345 
6142368976413 


MULTIPLICATION 

The  process  of  cross  multiplication  is  applicable  to  all  prob- 
lems in  multiplication  and  may  be  used  in  extending  invoices, 
as  the  number  of  the  articles  purchased  may  be  multiplied  by 
their  cost,  either  to  verify  the  cost  or  to  find  the  extensions. 
The  following  diagram  may  be  used  to  illustrate  the  multiplica- 
tion of  24  by  38  when  the  product  is  obtained  without  the  use 
of  pencil  and  paper: 


=  912 


1.  Multiply  8X4;   set  down  2  and  carry  the  3. 

2.  Multiply  8X2;    also  3X4;    to  the  sum  of  these  add  the  3  which  was 
carried.     The  total  is  31  set  down  the  i  and  carry  the  3. 

3.  Multiply  3X2;    add  the  carrying  figure  3;    set  down  the  9.     The  total 
or  product  is  912. 

Multiply  the  following  by  cross  multiplication: 

a  25X46  h   42X36  o  92X24 


b  24X74 
c  47X56 
d  68X35 
e  42x37 
f  83x24 
g  97X53 


i  58X43 
j  83x67 
k  49X26 
1  28  X64 
m  76X32 
n  26X45 


P  74X43 
q  46X58 
r  93X28 
s  79X42 
t  64X37 
u  67X43 


OFFICE   PRACTICE 


Add  the  following,  find  the  difference,  and  multiply  the  re- 
sult by  678. 


a  2  786  i  3  79 
89734569 
53461472 
98837863 
79753457 
37925238 


32345778 
41297349 
64368437 
23456842 
55747938 
23259725 


INTEREST 

In  calculating  interest  at  6%  for  short  periods,  business 
men  point  off  i%  or  2  places  in  the  principal  as  the  interest 
for  60  days.  Using  this  method  for  6  days  3  places  would  be 


O 


FRACTIONAL    PARTS    OF    AN    HOUR 


RAPID   CALCULATION  15 

pointed  off;  for  600  days,  i  place  would  be  pointed  off;  while 
for  6000  days  no  places  would  be  pointed  off  as  the  interest 
would  equal  the  principal.  Using  the  idea  that  60  minutes 
equals  one  hour  the  fractional  part  of  an  hour  would  be  as 
in  diagram  on  page  14. 

This  idea  may  be  applied  to  days  in  applying  the  fractional 
part  of  60  days  to  the  different  number  of  days  for  which 
interest  is  to  be  paid. 

To  compute  the  interest  at  any  other  than  6%  find  how  much 
more  or  less  than  6  is  the  rate  desired.  Find  the  interest  at 
6%  and  then  at  the  desired  rate. 

6  1/2%  is      1/2%  more  than  6% 

6  3/4%  is     3/4%      "       "       " 

7  1/5%  is  i  1/5%      "       "      " 
7  1/2%  is  i  1/2%      "      "       " 
5  1/2%  is      1/2%    less      "       " 
5  1/4%  is     3/4%      "       "       " 

4  4/5%  is  i  i/5%      "       "       " 
4  1/2%  is  i  1/2% 

Find  the  interest  at  6%  and  then  divide  by  the  fractional 
rate  above  or  below  6%.  If  more  than  6%  add  the  result  of 
the  division  to  6%.  If  less  than  6%  subtract  the  result  of  the 
division  from  6%. 

3  days  =  1/20  of  60  days  25  days  =5/1 2  of  60  days 

4  "  =1/15  "  "  "  30  "  =1/2     "  "  " 

5  "  =1/12  "  "  "  35  "  =7/12   "  "  " 

6  "  =1/10  "  "  "  40  "  =2/3     "  "  " 
10  "  =1/6  *«  "  45  "  =3/4     ""  " 
12  "  =1/5  "  "  "  50  "  =5/6     "  "  " 
15  "  =i/4  "  "  "  55  "  =11/12"  "  " 
20  "  =1/3  "  "  " 

The  following  problems  are  taken  from  Walsh's  Business 
Arithmetic: 

Find  the  interest  on  $583.20  at  6%  for  90  days,  for  80  days, 
for  75  days,  for  72  days: 


i6 


OFFICE   PRACTICE 


60  days  interest  on  $583.20 
+3Odays  1/2  interest  for  60  days 


$5.832 
2.916 


90  days  =  the    sum    of  60+30  =  90   days  8.748 

60  days  interest  on  $583.20                    =  $5.832 

+  20  days  1/3  of  60  days                           =  1-944 

80  days  =  the  sum  of  60+20  =  80  days  7-776 

60  days  interest  on  $583.20                    =  $5.832 

+  15  days  1/4  of  60  days                            =  1458 

75  days  =  the  sum  of  60+15  =  75  days  7.290 

60  days  interest  on  $585.20                    =  $5.832 

+  12  days  1/5  of  60  days                            =  1.166 

^2  days  =  the  sum  of  60+12  =  72  days  6.998 


decimal  point  moved 
in  the  principal  2 
places  to  the  left 


interest     on     $583.20 
for  80  days  at  6% 


interest     on     $583.20 
for  75  days  at  6% 


interest     on     $583.20 
for  72  days  at  6% 

To  find  the  interest  at  6%  for  any  given  number  of  days 
divide  the  number  of  days  into  aliquot  parts  of  sixty,  as: 

60  days         60  days         60  days         60  days         60  days 

30  days         20  days         15  days         12  days  6  days 

5  days  4  days  3  days  2  days  i  day 

95  days         84  days         78  days         74  days         67  days 


Find  the  interest  on  $394.75  at  6%  for  86  days. 

60  days  interest  =     $3-9475     -  Point  off     2     places     or 

20  days  =  1/3  of  60  days         =        1.3158     -  move  the  decimal  point 

6  days  =  1/10  of  60  days       =         -39475  -  in     the     principal     two 

places  to  the  left. 

5.65805  - 

or  point  off  3  places  in  the 
principal  or  move  the  deci- 
mal point  3  places  to  the  left 
for  6  days. 


To  find  the  interest  on  $834.36  at  6%  for  days  less  than  6o? 
48  days,  50  days,  54,  days,  55  days,  59  days. 


RAPID  CALCULATION  17 

The  only  difference  in  the  method  is  that  to  find  the  interest 
by  the  60  day  method  for  days  less  than  60  we  find  the  interest 
for  60  days  and  for  the  aliquot  part  of  60  days,  but  deduct  the 
interest  from  that  of  60  days. 

60  days         60  days         60  days         60  days         60  days 
—  15  days      —  12  days      — 10  days      —  6  days      —   5  days 


45  days         48  days         50  days         54  days         55  days 

60  days 
—   i  day 

59  days 

Find  the  interest  on  the  following,  using  the  60  day  method: 

1.  $6853        for  60  days 

2.  4934.50  for  6  days 

3.  5421       for  1800  days 

Note:     For  6000  days  no  places  pointed  off.     i8co  days  is  what  part  of  6000 
days? 

4.  $6348       for  6000  days 

5.  3256  for  1 200  days 

6.  1264.60  for  90  days 

7.  4211  for  72  days 

8.  1342  for  600  days 

9.  2330  for  900  days 
10.  1570  for  1 500  days 
u.  2427  for  200  days 

12.  5925        for  60  days 

13.  6380.75  for  6  days 

14.  449       for  1 200  days 

15.  4328       for  6000  days 

1 6.  1137.70  for  80  days 

17.  7421       for  72  days 

1 8.  4620       for  1800  days 
J9-  593       f°r  2400  days 

20.  8972       for  60  days 

21.  7372.45  for  6  days 

22.  4621       for  1800  days 

23.  1 200       for  6  days 

24.  450       for  60  days 

25.  1500       for  600  days 


i8  OFFICE   PRACTICE 

26.  6000   for  91  days 

27.  12000   for  64  days 

28.  830   for  i  year,  7  months,  30  days 

29.  1500   for  2  years,  6  months 

30.  1 200   for  2  months 

31.  1628   for  10  months 

32.  1560.75  for  i  year,  3  months,  5  days 
33-  I59°   f°r  !8oo  days 

34.  2135   for  2  years,  6  months 

35.  600   for  30  days 

36.  60   for  26  days 

37.  4200   for  66  days 

38.  4510   for  6  days 

39.  989   for  1 80  days 

40.  60   for  89  days 

41.  89   for  60  days 

42.  12000   for  45  days 

43.  1800   for  75  days 

44.  24   for  85  days 

45.  85   for  24  days 

46.  3000   for  75  days 

47.  75   for  3000  days 

48.  750   for  i  year 

49.  5700       for  i  year,  7  months,  20  days 

50.  1540       for  2  years,  5  months,  15  days 

Work   the    above  problems   out    at   61/2%,    63/4%,  7%. 
7  1/2%,  8%,  5%,  5  1/2%,   5  1/4%,  4%,  4  1/2%. 

Note:  Interest  at  6%  on  $8972  for  6     days  =       $8.972 — 3  places 

"       "     "  "         "  60       "   =       89.72 — 2  places 

"       "       "     "  "         "  600     "  =      897.20 — i  place 

"       "      "     "  "         "  6000  "  =    8972.00— no  places 


CHAPTER  THREE 

CORRELATION   OF   MERCANTILE   ACCOUNTS   WITH  OFFICE 
PRACTICE 

ACCOUNTS  have  existed  since  prehistoric  man  drew  a  square 
on  the  sand  near  the  seashore  and  placed  a  small  pebble  in 
each  corner  and  one  in  the  center  of  the  square,  making  it 
possible  for  him  to  trade  with  his  fellowman  and  to  record 
the  business  transactions  in  units  of  five.  The  Chinese  could 
trade  in  ten  units,  as  they  used  the  abacus,  by  moving  the 
colored  beads  which  were  strung  on  wires  and  were  in  units  of 
ten.  This  method  of  notation  is  still  used  in  parts  of  China, 
Japan,  and  Russia.  The  Babylonians  recorded  their  business 
transactions  on  sun-baked  tablets,  making  some  of  these  as 
small  as  one  inch  by  three  inches.  The  Metropolitan  Museum 
of  Art,  New  York  City,  has  on  exhibition  several  of  these 
tablets  on  which  records  of  partnership,  contracts,  receipts,  drafts, 
promissory  notes,  sales,  inventories,  and  checks  are  recorded. 

The  Egyptians  used  papyrus  for  their  accounting  records, 
and  had  a  system  of  classification.  The  Ancient  Greeks  re- 
quired all  their  public  officials  to  keep  accounts  of  their  steward- 
ship while  in  public  office,  and  upon  leaving  office  they  were 
required  to  render  an  account  of  all  funds  intrusted  to  their 
care  while  in  their  official  position. 

The  Romans  kept  records  of  all  receipts  and  payments  of 
cash  while  the  wealthy  Romans  generally  paid  by  checks. 

The  early  English  kept  a  system  of  records  which  related  to 
the  levying  and  collecting  of  taxes  from  all  taxable  estates. 

The  French  compiled  lists  of  all  debtors  and  creditors  similar 
to  customers'  and  creditors'  ledger  accounts  today. 

[19] 


20  OFFICE   PRACTICE 

The  idea  of  money  columns  developed  about  the  year  1300. 
Roman  numerals  were  used  in  keeping  accounts,  as  courts 
demanded  books  made  out  in  the  Roman  notation.  The 
Roman  numerals  were  discarded  and  the  Arabic  were  substi- 
tuted in  bookkeeping  records  about  the  year  1700.  Until 
quite  recently  loose-leaf  books  were  not  allowed  as  court  evi- 
dence until  a  decision  was  handed  down  making  loose-leaf 
books  acceptable  as  legal  evidence. 

The  Italians  were  the  first  nation  to  introduce  a  system  of 
double  entry  in  keeping  accounts  in  business  transactions. 
They  used  this  system  as  early  as  1340. 

The  Italian  idea  of  account  keeping  was  adopted  by  the 
English  and  later  by  our  country.  The  idea  of  double  form 
or  the  left  hand  side  of  an  account  being  used  for  all  debit  en- 
tries and  the  right  hand  for  all  credit  entries  has  therefore 
come  down  to  us  from  the  Italians,  through  England,  by  way 
of  Holland.  Some  English  texts  show  the  liabilities  of  the 
balance  sheet  recorded  on  the  left  side  of  the  page,  and  the 
assets  on  the  right  side,  while  we  now  record  the  assets  on  the 
left,  and  the  liabilities  on  the  right  side  of  the  balance  sheet. 

The  first  accounts  were  records  of  cash  receipts  and  pay- 
ments. Later,  when  records  were  kept  of  the  exchange  of 
goods,  that  is  of  merchandise  purchased  and  sold  for  cash 
and  on  account,  more  elaborate  systems  developed  and  the 
journal  was  added  as  an  extra  book.  In  the  old  method  of 
accounting,  the  student  entered  all  transactions  in  a  blotter 
or  day  book.  These  accounts  were  then  entered  in  the  journal 
and  were  later  transferred  to  a  book  called  the  ledger,  in  which 
all  transactions  of  a  similar  nature  were  summarized  under  one 
heading  as  "  Merchandise." 

Then  another  method  came  into  use  and  the  transactions 
were  entered  in  the  ledger  accounts  directly  .rather  than  in  the 
journal.  By  this  method  the  student  concentrated  his  atten- 
tion upon  the  increases  and  decreases  of  the  assets  and  liabili- 
ties of  the  business,  and  then  realized  the  result  of  his  work. 


MERCANTILE  ACCOUNTS  21 

By  reference  to.  the  cash  account  in  the  text  the  student  may  see 
that  the  increases  of  the  asset,  cash,  are  under  "cash  receipts," 
while  the  decreases  are  noted  under  "cash  paid  out"  by  the 
business,  the  difference  between  them  being  the  balance  of  cash 
on  hand.  Every  transaction  involves  a  transfer  of  either 
money,  or  an  equivalent  of  money,  from  one  person  to  another. 
If  cash  is  given  for  goods,  an  exchange  of  values  results  and  the 
cash  account  or  record  will  show  a  decrease  of  cash,  while  the 
goods  account  will  show  an  increase  in  the  value  of  goods. 
Now  this  idea  of  increase  or  decrease  of  debit  and  of  an  asset, 
expresses  the  necessity  of  the  idea  of  debit  for  increases  of 
assets  and  credits  for  decreases  of  assets.  For  every  debit, 
then,  there  must  be  a  credit,  as  an  exchange  involves  at  least 
two  accounts,  and  the  sum  of  all  the  debits  must  equal  the 
sum  of  all  the  credits.  By  using  the  method  of  the  equation 
by  which  the  debits  and  the  credits  are  obtained  which  lead 
to  the  trial  balance,  and  by  separating  what  the  business  owns, 
called  assets,  from  what  the  business  owes  to  others  (liabilities); 
and  by  subtracting  the  liabilities  from  the  assets,  we  find  the 
capital,  proprietorship,  or  the  present  worth  of  the  owner  of  the 
business.  Thus,  all  the  items  required  for  the  balance  sheet 
become  known.  The  business  man  is  always  interested  in  the 
balance  sheet  because  it  shows  him  his  capital,  his  assets,  and 
his  liabilities.  What  he  is  worth,  his  capital,  is  found  by  sub- 
tracting his  liabilities  from  his  assets.  Stated  as  an  equation, 
Assets  — liabilities  =  capital;  or  better  still:  Assets  =  Liabili- 
ties+capital. 

The  statement  of  the  business  which  shows  a  list  of  the  pro- 
prietor's assets  and  liabilities  or  what  he  owns,  and  what  he 
owes  to  others,  is  known  as  the  Balance  Sheet. 

Balance  Sheet  (see  page  55) 


Assets 


Liabilities 

+ 
Proprietorship 


22  OFFICE   PRACTICE 

February  i,  1921,  F.  E.  McGill  started  business  with  a 
cash  investment  of  $5000. 

ASSSETS  =  PROPRIETORSHIP 
Assets  equals  Proprietorship 

Cash  $5000  $5000 

February  2,  1921,  F.  E.  McGill  bought  on  account  merchan- 
dise for  $1500  from  Harris  &  Company;  a  typewriter  for  $100 
from  the  Underwood  Typewriter  Company,  and  office  furni- 
ture from  the  Library  Bureau  for  $400. 

ASSETS       —  LIABILITIES        =      PROPRIETORSHIP 

Cash  5000        

Merchandise        1500         Harris  &  Company          1500 
Typewriter  100         Underwood  Typewriter 

Company  100 

Furniture  400         Library  Bureau  400 


7000  2000  5000 

Working  this  problem  as  an  ordinary  problem  in  arithmetic 
gives  the  following: 

Assets  7000 

Liabilities  2000 


Difference  or 
Proprietorship  5000 


or  better  still: 

Assets 

Liabilities 

Cash 
Merchandise 
Typewriter 
Furniture 

5000 
1500 

100 

400 

Harris  &  Company         1500 
Underwood  Typewriter 
Company                    100 
Library  Bureau                 400 

Total  Assets 

7000 

Total  Liability             2000 
Capital                          5000 

¥.  E.  McGill                 7000 

Total  liability 
and  capital 

MERCANTILE   ACCOUNTS  23 

The  financial  facts  involved  in  the  above  problem  may  be 
graphically  stated  as  follows: 


Debits 


Credits 


Assets 

Liabilities  &  Capital 

Cash 

5000 

Harris  &  Co 

1500 

Merchandise 

1500 

Underwood     Typewriter 

Typewriter 

100 

Company 

100 

Furniture 

400 

Library  Bureau 

400 

Total  Liabilities 

2000 

Capital 

F.  E.  McGill 

5000 

7000 

Total  Liabilities 

7000 

Total  Assets 

&  Capital 

In  the  above  diagram,  for  convenience,  it  has  been  decided 
to  call  the  items  on  the  left  side,  debits  or  assets,  and  those  on 
the  right,  credits  or  liabilities  and  capital.  It  is,  therefore, 
well  to  bear  in  mind  that  assets  are  debits  and  are  recorded  on 
the  left  side  of  their  respective  accounts;  that  liabilities  and 
capital  are  credits  and  are  recorded  on  the  right  side  of  their 
accounts.  With  the  above  scheme  as  a  working  formula,  the 
recording  of  transactions  will  be  found  to  be  a  simple  matter. 

How  are  the  above  items  represented  in  the  ledger  or  the 
book  of  accounts?  To  illustrate  the  Cash  Account  first,  as- 
sume that  F.  E.  McGill  finds  a  $100  bill  on  Feb.  15,  1921; 
loses  $10  on  Feb.  17;  receives  a  gift  of  $500  from  her  uncle; 
donates  to  charity  $100.  How  much  cash  has  she  on  Feb.  17, 
and  what  has  happened  to  her  capital  or  worth? 

On  February  2,  1921,  the  ledger  accounts  are  shown  as  follows: 


Dr.  (Increases) 


Cash 


(Decreases)  Cr. 


5000 


24 


OFFICE   PRACTICE 


Dr. 


F.  E.  McGiLL 
Proprietor 


Cr. 


5000 


Dr.        Merchandise  Stock    .    Cr.       Dr.  Typewriter  Cr. 


1500 


100 


Dr.          Furniture         Cr. 


400 


Dr.  Harris  &  Co.  Cr.       Dr.  Library  Bureau  Cr. 


1500 


Dr.     Underwood  Typewriter  Company     Cr. 


400 


100 


In  the  above  records  or  accounts  (groups  of  value  of  the 
same  kind  under  their  respective  headings)  the  assets  are 
shown  recorded  on  the  left  or  debit  side  of  their  accounts,  while 
the  capital  or  worth  of  F.  E.  McGill,  and  the  liabilities  are 


MERCANTILE  ACCOUNTS 


recorded  on  the  right  or  credit  side  of  their  respective  accounts. 
After  February  2,  1921,  owing  to  the  increases  and  decreases  of 
cash  or  the  asset  cash,  there  will  be  indicated  in  the  cash  account 
the  several  increases  and  decreases  mentioned;  and  since  these 
increases  and  decreases  affect  the  worth  or  capital  of  F.  E. 
McGill,  these  increases  and  decreases  must  be  shown  corre- 
spondingly in  the  capital  account  also:  On  February  17,  1921, 
the  Cash  and  Capital  accounts  show  the  following;  the  other 
accounts  remaining  the  same. 


Dr.  (Increase) 


Cash 


(Decrease)  Cr. 


Feb.  2 

15  Found 
17  Gift 


5000 
100 

500 


Feb.   17  Lost 
Donated 


10 
100 


Dr. 


F.  E   McGiLL 
Capital 


Cr. 


Feb.  17  Lost  10 

17  Donated        100 


Feb. 


15  Found 
17  Gift 


5000 

IOO 

500 


In  the  cash  account,  the  asset  cash  increased  from  $5000  on 
February  2  to  $5600  on  February  17,  but  it  also  decreased  by 
the  sum  of  no;  thus  leaving  a  balance  of  $5490.  When  the 
cash  account  recorded  an  increase  of  $100  on  the  debit  side, 
additions  being  shown  on  but  one  side  of  an  account  and  sub- 
tractions on  the  opposite  side,  the  capital  account  which  shows 
the  worth  of  F.  E.  McGill  then  increased  to  $5100.  To  show 
$100  as  an  addition  to  F.  E.  McGill's  capital,  increase  had  to 


26  OFFICE   PRACTICE 

be  made  on  the  credit  side  of  the  capital  account.  Since  the 
decreases  of  cash  had  to  be  indicated  on  the  right  or  credit 
side  of  the  cash  account  so  the  decreases  of  the  capital  or  worth 
of  F.  E.  McGill  had  to  be  indicated  on  the  left  or  debit  side  of 
the  capital  account.  Thus,  in  graphic  form,  the  practice  of 
recording  increases  and  decreases  of  assets  and  capital  and 
liabilities,  too,  as  these  are  credit  accounts  also,  may  be  indi- 
cated as  follows: 

Dr.  Assets  Cr. 


Increases 


Decreases 


Dr.  Capital  Cr. 


Decreases 


Increases 


In  conclusion,  then,  it  is  well  to  remember  that  assets,  when 
increased,  show  these  increases  on  the  debit  or  left  side  of  their 
accounts;  and  when  decreased,  show  these  decreases  on  the 
credit  or  right  side  of  their  accounts,  this  arrangement  is 
necessary  for  convenience  and  system.  The  capital  account 
and  the  liability  accounts,  being  credits,  necessarily  show  in- 
crease on  the  credit  side  and  decrease  on  the  debit  side  of  their 
respective  accounts. 

The  question  always  is:  Has  the  transaction  or  event  involv- 
ing values  increased  or  decreased  the  capital  of  the  proprietor? 
Increased  or  decreased  any  asset  or  liability? 

F.  E.  McGill  bought  merchandise  for  cash,  $500. 

The  merchandise  or  purchase  and  the  cash  accounts  are  both 
asset  accounts.  The  merchandise  or  purchase  account  shows  an 
increase  of  $500  in  the  value  of  the  asset  purchases,  and  the 


MERCANTILE  ACCOUNTS 


cash  account  records  a  corresponding  decrease  of  $500,  as  the 
asset  cash  was  decreased.  In  this  case  the  capital  has  not  been 
affected;  two  assets  of  equal  value  were  simply  exchanged. 


Dr. 


Purchases 


Purchases  or  In- 
creases 
500 

Asset  is  increased 
Dr. 


Cash 


Cr. 


Receipts  or 
Increases 


Payments  or  De- 
creases 
500 

Asset  is  decreased 


F.  E.  McGill  bought  $200  merchandise  on  account  from 
Vincent  &  Company.  This  purchase  on  account  increases  the 
asset  account  merchandise  or  purchases  and  increases  the 
liabilities.  To  indicate  to  whom  money  is  due  for  an  asset 
increased,  a  personal  account  is  added  under  the  heading  of 
Vincent  &  Company,  to  whom  McGill  owes  the  $200.  Debit 
purchases  because  the  purchases  asset  has  increased.  Debit 
purchases  because  $200  worth  of  merchandise  was  received  or 
bought,  thus  increasing  the  assets  by  the  amount  of  the  pur- 
chase. Credit  the  personal  account,  Vincent  &  Company, 
because  the  liabilities  are  increased  $200;  that  is,  Vincent  & 
Company  have  a  claim  against  F.  E.  McGill  for  $200. 

Purchases 


200 
Asset  is  increased 


28  OFFICE   PRACTICE 

Vincent  &  Company 


200 
Liability  is  increased 


Assume  that  a  check  for  $100  is  sent  to  Vincent  &  Company, 
to  apply  on  their  account.  What  effect  has  this  transaction 
upon  the  condition  of  F.  E.  McGill's  worth?  Has  she  lost  or 
gained  any  money?  No.  But  has  she  decreased  her  cash  and 
by  so  doing  also  decreased  her  indebtedness?  Yes.  In  this  in- 
stance, then,  the  asset  cash  shows  a  decrease  on  the  right  or 
credit  side  of  the  cash  account  and  the  liability  account  called 
Vincent  &  Company;  to  distinguish  it  from  other  liability  ac- 
counts, is  correspondingly  decreased  by  an  entry  on  the  debit 
side  of  the  Vincent  &  Company  account.  Thus  far,  then,  it 
is  clear  that  for  convenience  and  system  it  is  best  to  debit 
assets  for  increases  of  those  assets;  to  credit  assets  for  decreases 
of  those  assets;  to  credit  capital  and  liabilities  for  increases  of 
those  items;  and  to  debit  them  for  decreases  of  the  liabilities 
and  capital. 

Financial  Statements 

What  do  you  own  that  helps  you  and  is  of  value  to  you  in 
school?  The  following  is  a  list  and  the  value  of  each  item: 


Pencil  box  .15 

Pencils  .10 

Ruler  .05 

Total  Assets  .30 


Do  you  owe  for  them? 
(no) 


Then  what  are  you  worth? 
You  may -call  it  your  total  assets. 

Since  you  owe  nothing,  your  assets  equal  your  capital. 
Business  men  want  information  of  all  the  property  available 
for  use  in   the  business.     Things  named  in  this  list   are  the 


MERCANTILE   ACCOUNTS 


29 


assets  of  the  business,  such,  as  counters,  shelves,  cash  registers, 
adding  machines,  stock  of  goods,  stationery,  etc. 

In  large  business  houses,  the  owner  does  not  personally  own 
all  the  property  needed  to  carry  on  the  business;  therefore  he 
must  borrow  from  others  what  he  needs,  either  money  or  stock 
of  goods  bought  but  not  yet  paid  for.  Thus  he  becomes  in- 
debted to  others.  He  is  liable  to  be  called  upon  to  pay  these 
people  who  now  have  a  claim  upon  the  assets  of  the  business. 

All  papers  used  in  business  must  be  labeled  and  dated  as  in 
the  following: 

Information  Statement  or  Financial  Statement 

JAMES  BROWN 
January  31,  1921 


Assets 


Cash 
Stock 

Total  Assets 


900 
125 


1025 


1025 


Liabilities  and  Capital 
Owed  to  Jones  318 

Owed  on  Written  Promise     75 

Total  Liabilities  393 

James  Brown,  Ownership  632 

1025 


Every  business  is  conducted  for  the  purpose  of  increasing 
ownership.  The  proprietor,  therefore,  desires  information  that 
will  help  him  to  increase  his  capital,  and  that  will  assist  him 
in  making  plans  for  the  future  management  of  his  business. 
The  information  statement  will  not  only  help  the  manager  him- 
self, but  may  be  shown  to  persons  from  whom  it  is  desired  to 
borrow  money  or  to  buy  goods  on  account. 

Since  any  going  concern  is  a  living  organization,  that  is  buy- 
ing and  selling  continually,  the  information  about  assets,  lia- 
bilities, and  capital  will  be  true  only  at  the  time  the  report  is 
made,  because  the  assets  are  always  either  increasing  or  de- 
creasing and  the  liabilities,  likewise;  therefore,  the  capital  is 
always  changing. 


30  OFFICE   PRACTICE 

James  Brown  on  February  28,  1.921,  calls  for  information 
about  his  business.  He  receives  the  following  statement  or 
report: 

JAMES  BROWN 
February  28,  1921 


Assets 

Liabilities  and  Capital 

Cash 

825 

Owed    to    the    Corn    Ex- 

change Bank              1595 

Due  from  Grant  &  Co 

42.5 

Owed  to  the  White 

Company                    34-OO 

Stock 

4625 

Total  Liabilities 

4995 

Horses  and  Wagons 

850 

James  Brown,  Capital 

1730 

Total  Assets 

6725 

6725 

6725 

What  would  you  do  with  the  two  sheets  of  information  if 
you  were  James  Brown?  You  would  compare  the  capital 
January  31,  which  was  $632,  with  the  capital,  February  28, 
$1730,  in  order  to  note  the  increase  in  capital  or  gain. 

No  business  man  is  satisfied  to  know  merely  that  he  gained 
or  that  he  lost.  He  wishes  to  know  the  source  or  cause  of  his 
gain  or  loss  so  that  he  may  know  how  to  improve  his  business 
and  make  it  progress  more  rapidly. 

Goods  are  bought  to  be  sold  again  at  a  higher  price.  This 
brings  in  the  two  elements  of  cost  and  selling  price,  which  must 
be  considered  in  order  to  determine  the  loss  or  the  gain  in 
the  business,  thus: 

Selling  price  of  goods  850 

Cost  of  goods  725 

Gain  125 

Every  business  must  incur  some  expenses  which  decrease 
the  gross  gain.  Suppose  the  expenses  in  this  problem  were 
$35,  then  the  net  gain  would  be  only  $90. 


MERCANTILE  ACCOUNTS  31 

The  owner  can  now  compare  this  report  with  the  report  of 
the  previous  month,  and  see  at  a  glance  whether  his  sales 
have  increased  or  decreased,  whether  the  cost  of  the  goods  has 
increased  or  decreased,  and  thus  know  the  present  growth  or  lack 
of  growth  of  the  business.  This  information  enables  him  to 
correct  any  faults  in  his  business  force  or  methods. 

The  business  usually  has  unsold  goods  on  hand.  Therefore,  it 
must  have  some  method  of  deciding  the  cost  of  the  goods  that 
have  been  sold.  In  a  new  business  if  a  dealer  buys  $8000 
worth  of  merchandise  and  has,  at  the  end  of  the  period,  $2000 
worth  left,  he  assumes  that  he  has  .parted  with  merchandise 
that  cost  him  $6000.  This  transaction  is  shown  thus: 

Purchases  8000 

Less  Inventory  (Stock  at  end)  2000 

Cost  of  what  was  Sold  6000 

Assume  that  the  business  continues;  then  he  has  $2000 
worth  of  stock  on  hand.  In  addition,  he  purchases  $3500  more 
of  stock.  He  now  has  what  he  started  with,  stock  (called 
inventory),  $2000,  plus  $3500  purchases,  or  $5500  merchandise 
available  for  sale.  At  the  end  of  the  month  he  takes  account 
of  stock  or  inventory  and  finds  that  the  stock  is  valued  at  $1300. 
He  must  have  parted  with  what  cost  him  $4200,  shown  thus: 

Merchandise,  Inventory  May  i,  2000 

Bought  during  month  3 500 


Available  for  Sale  during  month  55OO 

Less  Merchandise  Inventory  (on  hand  May  31)      1300 


Cost  of  Merchandise  Sold  .  4200 

The  business  man  wishes  all  the  information  about  the 
causes  of  the  gains  or  the  losses  during  the  month  or  longer  in 
a  concise  form,  thus: 


32  OFFICE   PRACTICE 

JAMES  SNOW 

Loss  and  Gain  Statement 

For  period  ended  June  30,  1921 

Sales  9850 

Inventory  June  I  360x3 — 

Purchases  4200 

Available  Merchandise  for  Sale  7800 

Inventory,  June  30  1200 

Cost  of  Goods  Sold  6600 


Gross  Gain  on  Trading  3250 

Deduct: 

Expenses  of  carrying  on  business  350 


Net  Gain  2900 

Thus  far  two  kinds  of  statements  have  been  shown,  both  of 
which  give  information  to  the  owner.  He  learns  from  them  the 
condition  and  the  progress  of  his  business.  The  question  must 
have  arisen  in  your  minds  as  to  where  the  bookkeeper  gets  this 
information.  The  bookkeeper  gets  the  information  from  the 
accounts  which  he  keeps  in  a  book  called  the  ledger.  The  in- 
formation about  cash  is  found  in  the  cash  account,  thus: 

Cash 


Received  (Increase) 
940 


Spent  (Decreased)- 
700 


The  business  man  is  interested  more  in  the  balance  of  cash 
on  hand  than  in  the  amount  of  cash  received  and  the  amount 
of  cash  disbursed;  therefore  the  balance  of  cash  appears  in  the 
information  statement.  Notes  receivable  account  in  the  ledger 


MERCANTILE   ACCOUNTS 


33 


tells  the  amount  of  the  notes  received  and  also  the  notes  re- 
deemed by  others,  thus: 

Notes  Receivable 


Received  (Increased 
asset)  — 

Redeemed  by  others 
(Asset  decreased)  — 

9400 
4600 
1  200 

9400 

1200 

But  the  proprietor  wishes  to  know  the  balance  of  the  notes 
still  to  be  redeemed  by  others,  therefore  the  balance  $4600  is 
recorded  on  the  information  sheet.  This  information  sheet 
contains  only  the  balance,  or  difference  between  the  right  and 
left  hand  sides  of  each  account,  and  for  that  reason  it  is  called 
the  balance  sheet. 

Balance  Sheet 

of 
JAMES  JONES 

December  31,  1920 


Assets 

Cash  240 

Notes  Receivable  4600 

Merchandise,  Inventory  6500 


Liabilities  and  Capital 

Notes  Payable  2300 

Accounts  Payable  1600 

James  Jones,  Present  Worth  7400 


All  the  items  on  the  left  side  of  the  balance  sheet  appear  as 
balances  on  the  left  side  of  the  respective  accounts,  and  the  items 
on  the  right  side  of  the  balance  sheet  are  found  on  the  right 
side  of  the  respective  accounts,  as  follows: 


34 


Balance 


Stock 


OFFICE   PRACTICE 

Cash 


240 


Notes  Receivable 


Balance  4600 


Merchandise  Inventory 


6500 


Notes  Payable 


Balance 


Accounts  Payable 
John  Smith  L.  Lane 


2300 


Balance       900 


James  Jones,  Proprietor 


Balance         700 


Capital 


7400 


MERCANTILE   ACCOUNTS 


35 


Assignment: 

Set  up  the  balance  of  the  ledger  accounts  from  which  the 
following  balance  sheet  was  made: 


Balance  Sheet 

JAMZS  RYAN 

September  30,   1921 

Assets 

Liabilities  and  Capital 

Cash 
Machinery  and  Tools 
Delivery  Equipment 
Merchandise  Inventory 
Accounts  Receivable 
Real  Estate 
Total  Assets 

9400 

1200 

900 
1500 

950 
2500 
16450 

Notes  Payable                  2500 
Accounts  Payable            1800 
Mortgage  Payable             850 
Total  Liabilities 
James  Ryan,  Capital 

5^0 
11300 

16450 

16450 

The  McGill  Company  buys  and  sells  in  various  ways,  for  cash, 
on  account,  and  on  written  promise,  such  as  notes,  trade  accept- 
ances^ and  drafts. 

If  the  company  buys  for  cash  and  either  gives  cash  from  the 
cash  drawer  or  gives  the  personal  check  of  the  company,  it  parts 
with  cash;  therefore,  the  amount  of  cash  given  or  parted  with, 
is  entered  on  the  credit  side  of  the  cash  account  by  the  book- 
keeper, or  may  be  entered  on  the  credit  side  of  the  cash  book. 

If  goods  are  sold  for  cash  and  cash  or  a  personal  check  is 
received  the  amount  of  this  cash  received  is  entered  on  the 
debit  side  of  the  cash  account  or  cash  book  to  indicate  an  in- 
crease of  the  asset  cash. 

To  find  the  difference  between  the  receipts  and  payments  of 
cash,  or  increases  or  decreases  of  cash,  find  the  total  receipts 
and  the  total  payments  of  cash  and  subtract,  calling  the  result 
of  this  process  the  balance,  or  cash  on  hand. 

As  the  books  of  this  company  are  kept  by  the  double  entry 
system  an  entry  of  equal  value  must  be  made  in  at  least  two 


36  OFFICE   PRACTICE 

accounts  for  every  business  transaction.  For  every  entry  on 
the  debit  side  of  the  books  there  must  be  an  entry  of  equal 
value  on  the  credit  side  to  keep  a  balance  which  will  be  a  check 
on  the  bookkeeper. 

As  the  following  transaction  is  for  merchandise,  the  amount, 
$275,  must  be  entered  as  a  cash  purchase  on  the  debit  side  of 
the  Purchase  account,  because  the  asset  goods  or  purchases 
was  increased.  Only  goods  bought  to  be  sold  by  a  business,  is 
called  merchandise,  and  is  recorded  in  the  purchases  account. 
When  merchandise  is  sold  at  cost  price  for  cash,  the  amount 
of  the  sale  must  be  entered  on  the  credit  side  of  the  purchases 
account  to  indicate  a  decrease  in  the  value  of  the  asset  purchases. 
The  difference  will  show  the  balance  of  goods  on  hand.  The 
amount  of  cash  received  is  entered  on  the  receipt  or  increase 
side  of  the  cash  account  while  the  cash  paid  out  is  entered  on 
the  payment  side,  or  decrease  side.  But  if  the  goods  sold  were 
sold  at  a  price  different  from  the  cost  price,  then  the  entry  must 
be  made  on  the  credit  side  of  the  sales  account  to  indicate  a  de- 
crease of  the  asset  purchases  at  a  greater  or  less  price  than  cost. 

The  McGill  Company  are  wholesale  dealers  in  flour,  grain, 
and  groceries;  thus  flour,  grain,  and  groceries  must  always  be 
considered  merchandise  by  them. 


Transaction 

Cash 

On  Hand                            9000 

For  Sale                                950 
(see  sales  a/c 
below) 

For  Purchases                          2000 

Decrease  of  cash  for 
goods  bought. 
(see  purchase  a/c  below) 

Purchases 


Cash  Purchase  2000 

Increase    of    asset     pur- 
chase    in     exchange     for 
decrease     of    asset     cash 
(see  cash  a/c  above) 


MERCANTILE   ACCOUNTS 


37 


Sale 


For  Cash 


950 


Decrease  of  the  purchases  asset 
at  a  price  different  from  cost. 
The  capital  of  the  owner  of  the 
business  will  be  affected  by  this 


event. 

(see  cash  a/c  above) 

If  the  decrease  of  the  purchases  asset  at  a  price  different  from 
cost  were  indicated  on  the  credit  side  of  the  purchase  account, 
it  would  be  difficult  to  ascertain  the  balance  of  goods  on  hand 
after  the  sale.  It  is  therefore  customary  to  set  up  a  branch 
of  the  purchases  account,  called  the  sales  account. 

The  McGill  Company  bought  for  cash  from  George  H. 
Silverman,  Boise,  Idaho,  the  following: 

25  bbl.  flour 
50  bu.  grain 

275.00 
Sold  for  cash  to  different  customers  the  following: 


15  bbl.  flour 
8  bu.  grain 


150.00 
15.00 


165.00 

Enter  the  transaction  in  the  cash  account  and  in  the  mer- 
chandise account,  as  represented  by  the  purchases  account 
and  the  sales  account. 

Cash  Account 


Receipts 
165.00 


Payments 
275.00 


and  in  our 


38  OFFICE    PRACTICE 

Purchase  Account 


Purchases 
275.00 


Sales 


Sales  165 


This  was  a  merchandise  purchase  for  cash  and  a  merchan- 
dise sale  for  cash. 

If  the  McGill  Company  buys  merchandise  on  account  it 
becomes  indebted  to  the  firms  from  whom  it  buys  and  must 
show  on  the  books  the  names  of  the  firms  to  whom  it  is  in- 
debted. This  is  done  by  opening  an  account  with  the  individ- 
ual from  whom  the  company  bought  and  the  amount  of  the 
purchase  or  merchandise  which  was  bought  on  account  is  so 
entered.  When  goods  are  bought  on  account  merchandise  is 
received,  and  the  amount  is  entered  on  the  debit  side  of  the 
purchases  account. 

As  the  books  are  kept  by  the  double  entry  system,  another 
account  is  opened,  called  a  personal  account,  which  shows 
to  whom  money  is  owed  or  from  whom  merchandise  was  bought 
on  account. 

When  the  bill  is  received  and  is  either  paid  in  cash  or  by  check 
of  the  McGill  Company,  the  amount  is  entered  on  the  credit 
side  of  the  cash  account  or  cash  book  and  the  same  is  also 
entered  on  the  debit  side  of  the  account,  made  out  in  the  name 
of  the  firm  to  whom  the  McGill  Company  was  indebted,  and 
shows  that  the  indebtedness  with  that  firm  is  canceled  or  de- 
creased by  payment  of  cash.  They  acknowledge  the  amount 
of  cash  received  by  sending  a  receipt. 


MERCANTILE  ACCOUNTS  39 

First  Transaction: 

The  McGill  Company  bought  on  account,  or  had  charged, 
the    following: 

From  Charles  B.  Vincent  &  Company,  Baltimore,  Maryland 

20  bbl.  G.  Sugar  100.00 

30  bbl.  Searchlight  Flour    150.0x3 


250.00 
Second  Transaction: 

The  Company's  check  for  $250  is  sent  to  Charles  B.  Vincent 
&  Company  in  full  of  account.  Both  transactions  are  entered 
in  the  ledger  as  follows: 

Charles  B.  Vincent  &  Company 


Indebtedness  with  them  is  can- 
celed 

(Liability  decreased) 


250.00 


McGill  Company  is  indebted  to 
the  above  firm 

(Liability  increased) 


250.00 


Purchases  Account 


Purchases 
(Asset  increased) 

250.00 

Cash  Account 


Receipts  or  Increases 


Payments  or  decreases 
250.00 


Sometimes,  when  a  firm  buys  or  sells  on  account,  security 
is  required.  This  may  either  be  bonds,  notes,  or  a  trade  ac- 
ceptance. If  merchandise  is  purchased  from  a  firm  and  a 
note  of  the  McGill  Company  is  given  as  security  that  the 
drawer  will  pay  the  amount  later,  this  transaction  must  be 
entered  in  two  accounts,  the  notes  payable  account  as  a  lia- 
bility, and  the  purchase  account  as  an  asset. 


40  OFFICE    PRACTICE 

When  the  amount  which  is  stated  on  the  face  of  the  note  is 
paid,  this  amount  must  be  entered  in  the  notes  payable  ac- 
count to  record  a  decrease  of  liability  and  also  in  the  cash 
account  to  indicate  a  decrease  of  the  asset.  When  a  note  is 
given  to  a  firm  that  note  must  be  paid  on  the  date  of  maturity. 

At  the  date  of  maturity,  or  sooner,  the  face  of  the  note  is 
paid  and  is  entered  on  the  debit  side  of  the  notes  payable 
account  because  the  indebtedness  has  been  decreased  and  the 
note  has  been  returned  to  the  drawer.  The  payment  of  cash  is 
entered  on  the  credit  side  of  the  cash  account. 

Transaction: 

The  McGill  Company  bought  merchandise  from  James 
Robertson  &  Company,  and  gave  the  company's  note  for 
$5000,  dated  January  31. 

The  above  firm  sent  a  check  to  James  Robertson  &  Com- 
pany in  payment  of  their  note  of  January  31. 

Entries  follow  in  their  respective  accounts  in  the  ledger. 

Notes  Payable  Account 


Paid      indebtedness,      therefore 
liability  was  decreased. 


5000.00 


Gave  promissory  note  to  James 
Robertson  &  Company.  McGill 
is  indebted  to  them,  hence  a 
liability  arises 


5000.00 


Purchases  Account  Cash  Account 


Purchases 
5000.00 


Receipts 


Payments 
5000.00 


Just  the  opposite  occurs  when  goods  are  sold  on  account 
and  a  note  is  given  by  someone  else  as  security  for  merchan- 
dise sold  to  them. 

The  amount  of  the  sale  is  entered  on  the  credit  side  of  the 


MERCANTILE  ACCOUNTS 


sales  account  and  the  amount  of  the  face  of  the  note  on  the 
debit  side  of  the  notes  receivable  account.  Merchandise  is 
parted  with  and  a  note  is  received  which  will  be  paid  at  the 
date  of  maturity  by  the  person  who  gave  it. 

When  the  person  who  owes  money  pays  his  note  the  trans- 
action is  entered  on  the  credit  side  of  the  notes  receivable 
account,  representing  a  decrease  of  an  asset  and  also  on  the 
debit  side  of  the  cash  account,  representing  a  corresponding 
increase  of  another  asset  in  exchange  for  the  asset  decreased. 

Transaction: 

The  McGill  Company  sold  merchandise  to  the  MacDonald 
&  Rich  Company  for  $450,  receiving  their  6o-day  note  dated 
March  5. 

MacDonald  &  Rich  sent  a  letter  inclosing  a  check  in  pay- 
ment of  their  note  of  March  5.  The  correct  entries  in  the 
ledger  follow: 

Notes  Receivable  Account 


Their   promissory   note   was   re- 
ceived; asset  increased 


450.00 


They  canceled  or  decreased  their 
indebtedness  and  the  canceled 
note  was  returned  to  them. 
Thus,  this  asset  disappears  in 
exchange  for  cash  asset. 


450.00 


Sales  Account 


Sales 
450.00 


Cash  Account 


Receipts 
450.00 


Payments 


42 


OFFICE   PRACTICE 


The  bookkeeper  gets  his  information  that  he  uses  in  the 
loss  and  gain  statement  from  the  accounts  in  the  ledger  and 
from  other  sources,  as  may  be  noted  in  the  following: 

H.  HARRIS 
Loss  and  Gain  Statement 

For  the  month  ended  November  30,  1921 


Sales 

Merchandise  stock,  November  I 

Purchases 

Goods  for  Sale 

Deduct  Merchandise  Inventory, 
November  30 

Cost  of  Goods  Sold 

Gross  Gain  on  Trading 

Subtract  Expenses 
Salaries 
Rent 

Advertising 
Telephone 

Total  Expenses 

Net  Gain 


3650 
8350 


12000 


50OO 


460 

75 
200 

4 


9250 


7000 


2250 


739 


The  following  accounts  supplied  the  necessary  information 
to  the  bookkeeper  for  making  the  loss  and  gain  statement. 

Sales  Merchandise  Inventory  Purchases 


9250 

Nov.  i  stock      3650 

Nov.  30  stock    5000 

Expense 

Salaries                   460 
Rent                        75 
Advertising            200 
Telephone                  4 

8350 


MERCANTILE  ACCOUNTS  43 

Expense 

Not  only  are  goods  bought  and  sold,  but  services  of  others, 
too,  may  be  bought  and  sold.  When  a  service  is  bought,  it  is  an 
asset  while  it  is  still  owned.  When  it  no  longer  exists  it  rep- 
resents a  decrease  of  the  worth  of  the  proprietor,  or  is  a  loss 
to  him.  Examples  of  temporary  assets,  or  assets  in  the  form 
of  services  which  soon  are  used  up  and  become  non-existent 
and  therefore  losses  or  decreases  from  capital,  are  General 
Expense,  Advertising,  Interest,  Salaries,  Repairs,  Rent,  and 
other  like  items. 

F.  E.  McGill  buys  postage  stamps  for  cash,  15  cents.  What 
does  she  buy?  The  service  of  the  U.  S.  Government  mails. 
In  this  case  debit  the  expense  account  to  represent  an  increase 
in  the  asset  expense  and  credit  the  cash  account  to  indicate  a 
decrease  in  the  asset  cash  in  exchange  for  the  service  asset 
called  expense. 

F.  E.  McGill  paid  cash  $10  to  Henry  Brown  for  the  use  of  his 
money  for  60  days.  Debit  interest  cost  or  paid  account,  to 
represent  the  purchase  by  F.  E.  McGill  of  the  services  of  Henry 
Brown's  money  and  credit  the  cash  account  to  indicate  a  de- 
crease of  cash.  But  as  the  service  of  Mr.  Brown's  money  exists 
only  for  a  limited  time,  it  disappears  as  an  asset;  and  as  nothing 
is  received  in  return  for  this  asset  which  disappears,  a  loss  or 
decrease  from  capital  results. 

F.  E.  McGill  allows  Chas.  Daley  the  service  of  her  money  for 
60  days  and  receives  cash,  $25  for  that  service.  Debit  cash  and 
credit  interest  earned  account  to  indicate  a  sale  of  services  for 
a  limited  time.  The  cash  increase  in  this  case  affects  the 
capital  of  F.  E.  McGill  as  an  increase  or  gain. 

Expense 


Postage  15 

(Purchase  of  Services) 


When  service  is  used  up, 
the  capital  account  is  deb- 
ited and  the  expense  ac- 
count is  credited. 


44  OFFICE   PRACTICE 

Interest  Cost     (Paid) 


Purchase  of  Services       10 


Same  as  the  expense  ac- 


count 

Interest  Earned 


When    F.    E.    McGill   re-          Sale  of  Service  25 

ceives  her  money  from  H. 
Brown  she  receives  more 
than  she  loaned  to  him. 
Her  capital  is  thereby  in- 
creased 

Business   Transactions 

For  practice  these  transactions  may  be  worked  out  on  loose 
sheets  of  ledger  paper  before  entering  them  in  the  general  ledger, 
as  no  erasures  are  allowed  by  the  United  States  Courts  in  the 
official  books  of  a  concern.  After  the  transactions  are  worked 
out,  a  trial  balance  will  prove  that  the  ledger  is  in  balance. 
(Supplementary  exercises  in  Accounts,  Balance  Sheet,  Trial 
Balance,  and  Profit  and  Loss  Statement  may  be  found  in 
Chapter  Ten  of  this  text.) 

Open  a  Cash  account  for  the  following  transactions: 

Nov.  1  Received  $529  for  membership  dues  in  the  general  organi- 
zation of  our  school. 

Nov.     2   Paid  for  printing  tickets  for  membership  cards,  $3.25. 

Nov.     3   Received  $35.99  for  "membership  in  the  tennis  club. 

Nov.     4   Paid  for  tennis  rackets,  $9.75. 

Nov.     5   Paid  carfare  for  the  visiting  basket  ball  team,  $15.75. 

Nov.  (J  Paid  for  tickets  to  the  theatre  as  reward  to  victorious 
team,  $18.50. 

Nov.  7  Paid  for  luncheon  served  to  the  visiting  basket  ball  team, 
$10.50. 

Nov.  8  Received  $39.45  from  admission  tickets  for  the  basket 
ball  game. 

Nov.  19   Paid  $5  to  the  basket  ball  coach. 

Nov.  20  Received  $10.25  as  admission  receipts  to  the  school  tennis 
match  with  the  Adelphia  tennis  team. 

Nov.  21   Paid  $2.50  carfare  of  the  visiting  tennis  team. 


MERCANTILE   ACCOUNTS  45 

Open  all  necessary  accounts: 

Dec.     1   James   Fischer  began   business  with   a  cash   investment  of 

$2000. 

Dec.     2   He  paid  rent  for  his  store,  $50. 
Dec.     3    Bought   of  Batterson   &   Company   for   cash,    merchandise 

amounting  to  $850. 
Dec.     4   Sold   to  Anderson   &   Scott,   on   account,   merchandise   for 

£365- 

Dec.     5    Sold  to  Somers,  on  account,  merchandise  valued  at  $256. 
Dec.     6   Sold  merchandise  to  Harris  for  cash,  $357. 
Dec.     7   Received  from  Anderson  a  check  for  $125,  to  apply  on  the 

account  of  Anderson  &  Scott. 
Dec.     8    Purchased  $243   worth  of  merchandise  from  James   Ferns 

and  sent  him  the  company's  check  in  full  of  account. 
Dec.     9    Bought  merchandise  from  George  Givens  valued  at  $245.75 

and  inclosed  a  check  for  half  of  the  amount  due.     He  asked 

Givens  to  allow  the  balance  to  remain  on  account. 


Sep.     1    Henry   Jones   began   the   flour   and   grain   business   at   521 

Main  Street,  investing  $6000. 

Sep.     2  'He  paid  rent  for  the  store  at  521  Main  Street,  £100. 
Sep.     3    Paid  $15  for  stamps  and  stationery. 
Sep.     4    Bought  from  James  Walters,  100  bbl.  flour,  $975. 
Sep.     5    Sold  to  Henry  Weiss  400  bbl.  flour,  $400. 
Sep.     6   Sold  on  account,  terms  10/5,  5/10,  n/3o,  to  H.  Jackson  & 

Co.  flour,  $395. 
Sep.     8    Bought  from  Livingston  Bros.  60  bbl.  flour  and   100  bu. 

grain,  $600. 

Sep.     9    Paid  salaries,  $55. 

Sep.  10    H.  Jackson  &  Co.  paid  on  account,  $270. 
Sep.  11    Sold  H.  Smith  on  his  note,  merchandise,  $350. 
Sep.  12    Paid  on  account,  to  Livingston  Bros,  $500. 
Sep.  13    Bought  of  H.  Claflin  on  note,  60  bbl.  salt,  $250. 
Sep.  14    H.  Smith  paid  his  note  of  Sep.  n,  face,  $350. 
Sep.  15    Paid  note  in  favor  of  H.  Claflin,  face,  $250. 


Oct.     1    John  Whittier  began   business   with   a  cash   investment  of 

$5000. 
Oct.     2    Paid  rent  of  store,  $100. 


46  OFFICE   PRACTICE 

Oct.     3    Bought  furniture  for  office  use,  $100. 

Oct.     4    Bought   apples   for  $200,    and   gave  the   company's   check 

for  the  amount. 
Oct.     4    Bought    on    account    from    James    Kingsley,    potatoes    for 

$100. 

Oct.  5  Sold  apples  for  cash  to  W.  Mason,  $225.  (The  name  of 
the  customer  is  not  necessary  when  the  transaction  is 
a  cash  sale.  When  one  pays  cash  for  an  article  in  a 
store  the  salesman  never  asks  the  name  of  the  pur- 
chaser; on  the  other  hand  if  one  buys  an  article  and 
says  to  the  salesman,  "Charge  it,"  or  "Charge  it  to 
my  account,"  the  salesman  must  know  the  name  of 
the  person  to  whom  the  articles  are  to  be  "charged," 
because  he  must  make  a  report  of  that  sale  to  the 
bookkeeper,  as  he  must  send  a  bill  for  the  amount 
charged  at  the  first  of  next  month.) 
Oct.  6  Bought  on  account,  terms  10/5,  S/io,  n/3O,  from  B.  H. 

Barren,  flour  for  $50. 

Oct.     8    Sold  to  Samuel  Norris  on  account,  terms  5/10,  n/3O,  po- 
tatoes for  $110. 
Oct.     9    Sold  to  C.   S.  Carsley,  flour  for  #65.     He  sent  his  check 

for  the  amount. 

Oct.  10    Paid  on  account  to  Kingsley,  $75. 
Oct.  11    Received  cash  on  account  from  Samuel  Norris,  $45  and  his 

check  for  $55. 

Oct.  12    Paid  on  account  to  B.  H.  Barron,  $45. 
Oct.  14    Received  on  account  from  C.  S.  Carsley,  $50. 
Oct.  15    Bought  on  account  for  our  note  from  James  Wender,  mer- 
chandise for  $500. 

Oct.  16    Sold  on  account  to  F.  Carter  for  his  note,  merchandise  for 
$400. 


May  1  A  student  (as  Proprietor)   begins  the  wholesale  dry  goods 

business,  investing  cash,  $6578. 

May  2  Paid  for  stationery,  cash,  $25. 

May  3  Bought  merchandise  of  H.  M.  Thamer,  on  account,  $785. 

May  4  Sold  merchandise  to  T.  S.  Morris  on  his  note  for  $350. 

May  5  Sold  merchandise  to  H.  F.  Lang  on  account,  $225. 

May  6  Sold   merchandise   to  H.  W.  Wilson    on  his   3O-day  note, 

£50.75- 
May     7    Bought  merchandise  of  H.  H.  Harris  on  our  note  for  $500. 


MERCANTILE  ACCOUNTS  47 

May     8   Sold  merchandise  to  H.  T.  Hamill  and  received  his  check 

for  $250. 

May     9    Paid  express  charges  on  merchandise,  $5.50. 
May  10    Paid  rent  of  store,  $100. 


Sep.     1    John    Harrison    commenced    the    flour    and    grain    business 

at  2160  Broadway,  investing  cash,  $3500. 

Sep.     2    Paid  rent  of  store  $75,  and  $25  for  stationery  and  stamps. 
Sep.     3    Bought  merchandise  for  cash  $550  (50  bbl.  flour). 
Sep.     4    Bought   merchandise   on    account   from    Frank    Gray,    $25 

(30  bu.  of  oats). 
Sep.     5    Bought    merchandise    for    cash    from    Henry    Hogan,    $27 

(25  bu.  wheat). 
Sep.     6    Mr.    Harrison   drew   $30   from    the    business    for   his    own 

private  use. 

Sep.     7    Sold  merchandise  for  cash,  $420  (25  bbl.  flour). 
Sep.     9    Sold  merchandise  on  account  to  Henry  Davis,  $32  (15  bu. 

of  wheat). 

Sep.  10    Paid  salaries,  $150. 

Sep.  11    Henry  Davis  paid  us  $15  to  apply  on  account. 
Sep.  12   We  paid  Frank  Gray  $20  to  apply  on  account 


Nov.     1  J.  M.  Hastings  began  the  flour  and  grain  business  at  345 

Broadway,  with  a  cash  investment  of  $3000. 
Nov.     2   Bought  of  H.  F.  Adams,  100  bbl.  flour  at  $4.95  a  bbl.  and 

600  bu.   corn   at  $.30  per  bu.     Paid   1/2  with  company's 

check,  balance  on  account. 
Nov.     3   Paid  rent  of  store,  $100. 
Nov.     4   Bought  a  typewriter  for  office  use,  $75. 
Nov.     5    Bought  postage  stamps  and  stamped  envelopes,  $15. 
Nov.     7  Sold  N.  C.  Collins  &  Co.,  Brooklyn,  N.  Y.,  terms,  5/10, 

n/3O,  150  bu.  corn  at  $.40  a  bu.  and  50  bbl.  flour  at  $4.50 

a  bbl. 
Nov.     8   Sold   for  cash   to   Smith   &   Robbins,   New  Haven,  Conn., 

25  bbl.  flour  at  $6.50  a  bbl.  and  200  bu.  corn  at  $.40  a  bu. 
Nov.     9   Bought  of  W.  A.  Scott,  New  York  City,  on  account,  300 

bbl.  flour  at  $5  a  bbl. 
Nov.   11    Paid  clerk  hire,  $57.85. 


48  OFFICE   PRACTICE 

Nov.  12  Sold  Summons  &  Son,  Buffalo,  N.  Y.,  for  cash,  50  bbl. 
flour  at  $6.50  a  bbl.  and  20  bu.  corn  at  $.45  a  bu. 

Nov.  13  Sold  Smith  &  Robbins,  100  bbl.  flour  at  $6.50  a  bbl.  Re- 
ceived their  note  for  the  amount  of  the  purchase  by  them. 

Nov.   15  J.  M.  Hastings  withdrew  $200  for  his  own  personal  use. 

Nov.  16  Sent  H.  F.  Adams  a  check  for  the  balance  due  on  the  mer- 
chandise they  sold  to  us  on  account. 

Nov.  17  Summons  &  Son  bought  merchandise  amounting  to  $250, 
accepting  the  terms  of  3/10,  2/15,  n/3O. 

Nov.  19  We  bought  merchandise  amounting  to  $750  from  Hender- 
son &  Co.,  terms,  5/8,  4/10,  2/15,  n/3O. 

Nov.  20  Smith  &  Robbins  sent  a  check  for  the  face  of  their  Note 
of  Nov.  13. 

Nov.  21  John  Fox  &  Son  bought  on  account,  100  bbl.  flour  at  $6.75, 
and  25  bu.  corn  at  $.45. 

Nov.  21  N.  Collins  &  Company  paid  the  amount  due  on  the  invoice 
of  Nov.  7. 

Nov.  22   Paid  freight  and  express  charges  amounting  to  $54.75. 

Note:  The  terms,  2/10,  1/15,  11/30  mean  2%  discount  if  paid  any  time  before 
10  days;    i%  off  if  paid  any  time  before  15  days  (naturally  between  10 
and  15  days);   n/3o  means  the  entire  bill  must  be  paid  within  30  days 
and  no  discount  will  be  allowed. 
See  Chapter  Ten  for  data  for  Balance  Sheet  and  Loss  and  Gain  Statements. 

The  bookkeeper  has  entered  the  business  transactions  for  the 
months  of  April  and  May  in  his  accounts.  He  wished  to  know 
the  total  amounts  of  the  debit  and  credit  of  each  of  the  following 
accounts  and  the  difference  between  the  debit  and  credit  side  of 
each  account  (Balance). 


1921                           The  McGill  Company 

1921 

Investment 

558.90 

Investment 

468.50 

Investment 

554-32 



1921 


MERCANTILE   ACCOUNTS 
Cash 


49 
1921 


Receipts 

Payments 

1556.25 

632.50 

I48375 

250.00 

538.50 

437-50 

226.37 

205.05 

2666.67 

1350.27 

13-74 

243.22 

I527-50 

33-35 

1789.54 

372.25 

824.32 

730.00 

1921 


Merchandise  Purchases 


1921 


(Purchases) 


4408.70 

7645-63 

13480.89 

8510.25 


(Returned  Purchases 
because    of    defects    for    which 
we  receive  credit  on  their  books) 
227.50 
145.00 


1921 


Merchandise  Sales 


1921 


Returned  Sales 
because  of  defects 
for  which  Credit 
must  be  allowed. 


62.50 


Sales 


5605.73 
10100.50 
15125.00 
11950.25 


50 
1921 


OFFICE   PRACTICE 
Expenses 


1921 


700.00 
250.50 
265.25 
501.10 

33-35 
750.30 
375-68 
125-05 


1921 


George  Williams 


1921 


(Became  indebted  to  us) 

538.50 

785-67 
1881.00 

1527-50 

1785.72 


(Canceled  indebtedness  with  us) 

538.50 
2666.67 

1527-50 


This  problem  may  be  worked  on  the  adding  and  calculating 
machines.  First,  find  the  total  of  the  debit  side  of  each  ac- 
count, and  then  find  the  total  of  the  credit  side  of  each  account. 

Find  the  difference  between  the  debit  and  credit  side  of  each 
account  or  the  balance  by  subtraction  on  the  calculating  machine. 

A  trial  balance  is  the  total  of  the  debit  side  and  the  total  of 
the  credit  side  of  each  account  in  a  set  of  books.  The  debit 
side  must  always  equal  the  credit  side  of  a  trial  balance,  and 
will,  if  the  bookkeeper  has  entered  an  equal  debit  and  credit, 
for  each  business  transaction. 

The  following  accounts  have  been  taken  from  the  general 
ledger.  The  bookkeeper  wishes  to  verify  the  trial  balance 
before  he  enters  it  in  his  records.  He  has  given  the  totals  of 
each  side  of  each  account.  Verify  the  trial  balance  on  the 
calculating  machine. 


CO  £ 


S  3 


3    3 

O     O 


. ~    4J     r"    +J  O 


' 


g  § 

CO 

3 


d2«2 


i 

U 

3 


i  8 


Q 


5    C 


0 


8. 


•c 

b 


J 

H 


OO    "-I 


O    >-" 


52  OFFICE   PRACTICE 

Instead  of  the  explanation  given  in  the  debit  and  credit 
column  of  the  trial  balance  insert  the  figures  which  are  on  the 
debit  or  the  credit  side  of  the  following  accounts  and  add  the 
debit  and  credit  column  to  see  whether  the  debit  side  is  equal 
to  the  credit  side  of  the  trial  balance. 

Trial  Balance  of  the  McGill  Company 


c 

The  McGill  Company 

40000.00 

J 

6 

Cash 

42783.66 

6289.03 

7 

Notes  Receivable 

1500.00 

500.00 

8 

Notes  Payable 

660.00 

1660.00 

9 

Merchandise 

9687.38 

7938.67 

10 

Furniture  &  Fixtures 

185.50 



ii 

Expense 

293-I5 



12 

Real  Estate  (Cost) 

1645.00 



13 

John  Rupert 

765.00 

749-32 

H 

Samuel  Raymond 

1000.00 

1316.20 

IS 

Henry  Johnson 

92.13 

70.00 

16 

Reynolds  &  Co 

88.60 

Trial  Balance  of  the  McGill 

Company 

5 

The  McGill  Company 

190.00 

6220.00 

6 

Cash 

4942.69 

3358.50 

7 

Mdse 

8760.00 

5085.40 

8 

Expense 

450.00 

9 

Office  Fixtures 

187.50 

10 

Notes  Receivable 

780.00 

254.70 

ii 

Notes  Payable 

540.00 

1040.00 

12 

Ferris  &  Co 

1045.00 

745.00 

13 

French  &  Co 

198.13 

75-6i 

H 

Harris  &  Co 

72.60 

487.20 

15 

Johnson  &  Co 

192.60 

92.11 

MERCANTILE   ACCOUNTS 


53 


Find  the  total  receipts  and  the  total  payments  of  cash; 
then  subtract  the  payments  from  receipts  in  order  to  find  the 
balance,  in  the  following  problem: 


Cash 


Cash 


Receipts 

Payments 

Receipts 

Payments 

2I7S-SO 

1125.18 

1196.25 

294.25 

346.28 

374.60 

327.64 

1872.19 

592374 

27.42 

2748.19 

146.72 

89.25 

826.55 

3124.63 

345-28 

847.19 

3245-25 

275-40 

2173.44 

1564.92 

I73-I9 

877.89 

652.96 

2147.29 

1824.74 

1646.10 

1721.40 

739-47 

392.70 

4854-25 

1025.01 

90.50 

213-43 

1232.16 

108.72 

216.10 

2174.86 

647.23 

2096.50 

1472.25 

917-75 

92.46 

815-14 

674.50 

325-50 

376.75 

1172.60 

2175.25 

Balance 

87.25 

Balance 

Take  a  trial  balance  from  the  following  accounts;  verify  on 
the  calculating  machine. 


The  McGill  Company 

Investment 
4000.00 


Cash 


Loss 

120.00 


Merchandise 


Receipts 
13600.00 


Purchases 


Payments 
10229.50 


Bought 

5150.00 

Merchandise 


Returned  Purchases 

85.00 


Sales 


Returned  Sales 
250.00 


Sold 
6675.00 


54  OFFICE   PRACTICE 

Thomas  Browne  Expense 


2500.00 


Smith  &  Foley 


1000.00  675.00 

Rawlins  &  Sons  Lane  &  Court 


1400.00 
Smith  &  Henderson 


800.00 


800.00 


920.00 


350.00 


James  Talcott 


Sanders  &  Co 


1040.00 


800.00  2650.00 


5500.00          1300.00 


2000.00 


Babcock  &  Co. 


Balk  &  Tramm  Discount  on  Purchases 


800 


700.00          250.00 


250.00 


Discount  on  Sales      Notes  Receivable 


17-75 
Notes  Payable 


152.25 


3000.00 


1 200.00          1700.00 


2700.00 


Inventory 

An  inventory  is  a  list  of  goods  that  are  on  hand  in  any  com- 
pany's store  at  any  stated  period.  Some  concerns  take  account 
of  stock  every  six  months.  The  clerks  in  each  department  go 
through  the  department  and  make  a  list  of  every  item  on 
hand  at  a  certain  date.  This  list  is  given  to  the  bookkeeper 
and  he  fixes  the  cost  price  of  each  on  the  article.  The  cost 
price  is  usually  used  in  figuring  inventory  because  an  article 
may  be  sold  at  cost;  if  the  present  market  price  were  used  the 
entry  would  need  to  be  changed  if  the  current  market  price 
were  changed,  because  that  would  show  a  false  profit  on  the 
books.  A  company  knows  what  the  goods  cost  and  can  usually 
sell  them  foFthe  cost  price.  The  cost  is  not  taken  when  there 
are  exceptionally  large  declines  in  the  cost  price,  as  in  the 
years  1920  and  1921. 


MERCANTILE   ACCOUNTS 


55 


Some  stores  have  a  system  similar  to  this.  At  a  certain 
date  they  decide  to  begin  to  take  an  account  of  the  merchan- 
dise on  hand.  They  place  a  card  in  each  department  on  which 
the  list  of  goods  is  entered.  This  card  is  kept  in  the  department 
and  if  any  goods  are  sold  the  clerk  in  charge  makes  a  record 
of  this  sale  on  the  card.  These  cards  are  collected  on  a  certain 
day.  It  is  an  easy  matter  to  figure  out  the  total  amount  of 
stock  on  hand  from  the  cards.  The  cost  price  is  entered, 
extensions  are  made,  and  the  company  has  a  true  inventory 
of  that  date. 

Make  out  the  following  inventory,  enter  the  cost  price  on 
each  article,  and  find  the  total.  Addition  and  multiplication 
may  be  made  on  the  calculating  machine. 


The  Me  Gill  Company 


Inventory  January,  1921 


Article 

Weight 

Cost 

Total 

50  hf.  chest  Japan  Tea 

3025  Ibs. 

25C. 

25  hf.  chest  Old  Rose  Tea 

1435  Ibs. 

38c. 

25  hf.  chest  English  Breakfast 

567  Ibs. 

32C. 

27  bales  Mocha 

3456  Ibs. 

26C. 

34  mats  Java 

3200  Ibs. 

29C. 

25  boxes  Pepper 

245  Ibs. 

I2C. 

45  cases  Evaporated  Apples 

5671  Ibs. 

ISP. 

67  boxes  Farina 

6578  Ibs. 

i4c. 

89  cases  Dried  Cod 

232  Ibs. 

IIC. 

600  cans  Fish  (dried  cod) 

3145  Ibs. 

34c. 

4800  pkgs.  Macaroni 

24000  Ibs. 

o6c. 

54  pkgs.  Milk  Crackers 

540  Ibs. 

05c. 

25  pkgs.  Evaporated  Peaches 

2545  Ibs. 

OQC. 

450  cans  Peas 

i5c. 

2850  cans  Pumpkin 

I4c. 

The  above  is,  to  the  best  of  our  knowledge  and  belief,  a 
correct  inventory  of  the  goods  on  hand  in  the  McGill  Company, 
210  Bedford  Street,  Stamford,  Connecticut,  at  the  close  of 
business  January  31,  1921. 

The  United  States  Government  has  issued  an  inventory  of 


56  OFFICE   PRACTICE 

its  supplies  sold  by  the  government  officials  throughout  the 
United  States.  These  are  supplies  left  from  the  army  and  navy 
after  the  World  War. 


(Model  Order  Blank) 


•1919. 


Hon.  Byron  R.  Newton, 

Chairman,  Food  Supply  Committee, 
Room  135,  Custom  House. 

I  desire  to  order  the  following  Surplus  Army  Food  Products 


Quantity 

Article 

Price 

Amount  Due 

Tinned  Bacon 

at  .35  a  Ib. 

Corned  Beef,  i  Ib.  can 

"  .29  a  can 

Corned  Beef,  2  Ib.  can 

"  .55  a  can 

Roast  Beef,  2  Ib.  can 

"  .63  a  can 

Corn  Beef  Hash,  I  Ib.  can 

"  .22  a  can 

Tomatoes,  #2  can 

"  .09  a  can 

Tomatoes,  #3  can 

"  .11  a  can 

Pork  &  Beansj  #i  can 

"  .05  a  can 

Wax  Beans,  #2  can 

"  .11  a  can 

Stringless  Beans,  $2  can 

"  .09  a  can 

Corn,  #2  can 

"  .09  a  can 

Peas,  #2  can 

"  .09  a  can 

Pumpkin,  #2  can 

"  .06  a  can 

Squash,  #2  can 

"  .06  a  can 

Sugar  Cured  Ham 

"  .30  a  Ib. 

Strip  Bacon 

"  .31  a  Ib. 

Tnl-^1  - 

Signed- 


Each  student  will  make  out  an  order  similar  to  the  above 
for  the  purchase  of  a  supply  of  the  above  Surplus  Army  Food. 
(Order  blank  is  in  commercial  paper  envelope.) 

Each  is  allowed  to  purchase  one  ham,  and  6  cans  of  every 
other  article  of  food. 

Using  the  cost  price,  which  is  stated  opposite  each  article, 
order  the  maximum  amount  allowed,  make  the  extensions 


MERCANTILE   ACCOUNTS 


57 


(Number  of  articles,  multiplied  by  the  price  of  the  article,  per 
Ib.  or  can)  and  find  the  total  amount  due. 

Verify  on  the  adding  machine  and  make  out  a  check  to 
James  S.  Long  and  have  the  treasurer  of  our  company  sign  it. 


(Model) 

U.  S.  CUSTOMS  SERVICE 
NAVY    DEPARTMENT    SURPLUS    FOOD 
Room  135,  Custom  House 


SUPPLIES 


Order  Blank 

Hon.  Byron  R.  Newton, 

Chairman,  Food  Supply  Committee. 

I  desire  to  order  the  following  Surplus  Navy  Food: 


Quantity 

Articles  and 

Prices 

Amount 

Apple  Butter,  7>4  Ib.  cans 

[3]  at 

.61  per  can 

Apples,  No.  2^ 

[24]    " 

•30    "    " 

Asparagus,  No.  2^ 

[24]   " 

•30    "     " 

Apricots,  No.  2^ 

[24]   " 

•30     (t    " 

Beans,  String,  No.  2 

[24]   " 

.10 

Bacon,  12  Ib. 

[3]  ;;a 

.80     "    " 

Baking  Powder,  5  Ib. 

.50  r  " 

Corn  Starch,  I  Ib.  pkg. 

[20]     " 

.07     "  pkg 

Corn,  No.  2                   cans 

[12]  ;; 

.10     "  can 

Jams,  assorted,  8^  Ib.  " 

•95     "     " 

Milk,  evaporated,  I  Ib.  " 

[48]  " 

.11 

Peaches,  No.  2^2 

[24]  " 

.30  "  " 

Peas,  No.  2 

[24]  " 

.10 

Pineapple  (sliced)  No.  2^" 

•[24]  " 

•30     "     " 

Prunes,  7  Ib. 

[6]   " 

.68 

Pumpkin,  No.  3 

[12]   '.' 

.11 

Pears,  No.  2^ 

[24!   " 

•30     "     " 

Raisins,  5  Ib. 

[6]  " 

.80 

Roast  Beef,  2  Ib. 

[6]  '; 

.64 

Total- 


Signed- 


OFFICE   PRACTICE 


U.  S.  CUSTOMS  SERVICE 

NAVY    DEPARTMENT    SURPLUS    FOOD    PRODUCTS 
Room   135,  Custom  House 

Order  Blank 
Hon.  Byron  R.  Newton, 

Chairman,  Food  Supply  Committee. 

If  arrangements  can  be  made  as  to  terms  of  settlement  and  date 
of  shipment,  I  desire  to  order  the  following  Navy  food  supplies: 


Quantity 

Article  and  Price 

Amount 

Apples,  evaporated,  25  Ib.  cans 

at 

#3-35 

per  can 

1 

Baking  Soda,  35  —  I  Ib.  pkgs.  to  case    " 

.06 

"  Pkg- 

Barley  —  100  Ib.  sacks 

" 

2-75 

"  sack 

Corned  Beef,  6  Ib.  cans 

" 

1.40 

"  can 

Biscuit  (hard  bread)  25  Ib.  cans 

M 

1.05 

«     « 

Catsup,  No.  10  size  '3  qt.) 

" 

.65 

it     « 

Cocoa,  5  Ib.  cans 

" 

1-25 

"     " 

Mackerel,  100  Ib.  kegs 

" 

12.50 

"keg 

Pickles,  92  Ib.  kegs 

" 

7.88 

t<     « 

Pork,  salt  —  100  Ib.  kegs 

" 

18.50 

«     <. 

Salt,  100  Ib.  sacks 

" 

I.OO 

"  sack 

Peaches,  evaporated,  25  Ib.  cans 

" 

3-35 

"  can 

Sauce,  Worcester,  5  gal.  kegs 

" 

3-50 

"keg 

Sauerkraut,  6%  Ib.  cans 

ii 

.36 

"  can 

Spinach,  No.  10  size  cans 

" 

•53 

«     n 

Tea  (Ceylon)  42  Ib.  chests 

" 

.46 

"  Ib. 

Vinegar,  22  gal.  kegs 

" 

•29 

"  gal. 

Salmon,  i  Ib.  cans 

[24]  " 

.14 

"  can 

Sardines,  ^4  Ib.  flat  cans 

[24]  " 

.11 

"     " 

Sauerkraut,  6y£  Ib.  cans 

[2]    " 

.36 

"     i< 

Tomatoes,  No.  3  cans 

[24]    " 

.12 

"     " 

Dry  Beans,  Kidney  (Kintoki) 

5  Ib.  bags 

[3l    " 

.06 

"     Ib. 

Dry  Beans,  Navy  5  Ib.       " 

[3]    " 

.IO 

"     " 

Dry  Beans,  Lima  5  Ib.       " 

[3]    " 

.11 

«       « 

Rice,  5  Ib. 

[3]    " 

.08 

"       " 

Syrup,  No.  2l/2  Ib.  cans     " 

[24i    " 

•19 

"  can 

Signed- 


-Dept.- 


Room  No.- 


MERCANTILE  ACCOUNTS  59 

Make  out  an  order  similar  to  the  model  for  the  purchase  of 
surplus  food  products  of  the  Navy,  ordering  six  articles  of 
each  item  for  use  in  your  neighborhood.  Verify  extensions  on 
the  adding  and  calculating  machine. 

The  difference  in  the  retail  price  of  government  surplus  goods 
in  the  various  sections  of  the  country  is  due  to  the  local  expense 
of  hauling  such  goods,  that  is,  cost  of  transportation  from  the 
government  warehouse  to  the  place  of  sale  of  the  goods  and 
the  damage  due  to  the  method  of  handling  the  goods  after 
the  delivery  from  the  government  warehouse. 

The  numbers  enclosed  in  the  small  brackets  on  the  model 
represent  the  amount  of  cans  or  packages  of  food  articles 
allowed  to  each  person.  All  individual  orders  must  be  settled 
for  in  full,  therefore  students  must  make  out  a  check  payable 
to  James  S.  Long,  Treasurer  Food  Supply  Committee,  and 
enclose  the  check  in  the  letter  in  which  the  order  is  sent. 

Make  out  a  similar  order  for  the  maximum  amount  allowed. 
Pay  by  check.  Have  the  proper  person  sign  the  check. 

Verify  all  extensions  on  the  adding  and  calculating  ma- 
chine. Make  out  the  necessary  data  on  the  stub  of  your  check 
in  the  check  book. 

Dry  Goods  Invoices 

Verify  the  addition  of  the  number  of  yards,  the  extensions, 
and  after  listing  the  cost,  add  the  extensions  to  verify  the 
total  cost. 

The  small  number  written  a  little  above  and  to  the  right 
of  the  numbers  41,  35,  39,  indicate  quarter  yards,  thus  4I1, 
means  41  and  1/4  yds.,  352  equals  35  and  1/2  yds.  This 
method  of  writing  quarters  is  used  by  the  wholesale  dry 
goods  companies. 


10     pcs.  Muslin 
4iS  352>  39S  343 
40,  36',  3Sl>  333 
40l,  373  =  (374  &  1/4  yds)  at  £.08  1/4 

$30.90 

6o 


OFFICE   PRACTICE 


9     pcs.  Gingham 
24,  31,  283,  272 
28,  28,  261,  292,  262 
=  (249  &  1/4  yds)               at  $.09  1/2 

23.70 

12     pcs.  Long  Cloth 
39>  392>  39S  402 

461,  443,  401,  42^ 
=  (503  &  i/2  yds)               at  £.09  3/4 

Total 

49.09 

oooooooooco 

When  a  Split  Stick 

Was  a  Bank  Check 

When  a  man  put  money  in  an  English  bank,  three 
hundred  years  ago,  his  deposit  was  recorded  by  notches 
in  a  stick,  which  was  then  split,  the  bank  keeping  one 
half,  the  depositor  the  other.  Before  money  was  with- 
drawn, the  two  halves  had  to  be  matched  together. 

The  depositor's  half  was  called  "bank  stock,"  the 
part  the  bank  kept  was  the  "check." 

Copyright,  1922,  National  Blank  Book  Company.     Used  by  permission. 


CHAPTER   FOUR 

BANKING  AND  BUSINESS  PROCEDURE 

BANKING  and  business  are  dependent  upon  each  other. 
Success  in  business  depends  in  a  large  measure  upon  banking 
conditions,  and  banks  depend  upon  business  for  their  growth. 
Banks  today  resort  to  advertising,  a  method  unheard  of  in  the 
early  days  of  the  banking  business.  The  modern  business 
man  understands  the  assistance  that  the  bank  can  be  to  him 
and  talks  over  his  business  problems  with  the  bank  .officials. 
A  man  in  business  may  carry  on  a  checking  account,  borrow 
money,  place  funds  on  interest  in  the  savings  department  of 
a  bank,  buy  and  sell  bonds  and  securities,  discount  his  com- 
mercial papers,  and  even  place  his  legal  papers  and  valuables 
in  the  safe  deposit  vault  within  the  bank. 

In  the  early  days  of  banking  a  banker  dealt  in  money  only. 
The  early  Greek  and  Roman  bankers  received  deposits  of 
money  and  often  made  loans.  Small  clay  tablets  of  Babylonian 
days  show  transactions  in  promissory  notes,  checks,  drafts,  and 
records  of  loans  on  mortgages.  Private  banking  institutions 
existed  in  the  early  Italian  cities.  The  bank  of  Venice  was, 
probably,  the  first  public  bank.  This  bank  received  deposits 
of  foreign  money  and  issued  certificates  of  deposit.  In  1609 
the  Bank  of  Amsterdam  was  established  and  accepted  money 
on  deposit  which  could  be  withdrawn  when  desired  or  trans- 
ferred from  one  person  to  another.  In  1694  the  Bank  of  Eng- 
land was  established  to  provide  funds  for  the  English  govern- 
ment. It  was  incorporated  and  received  its  charter  from 
Parliament.  This  bank  laid  the  foundation  of  our  modern 
banking  system. 


62  OFFICE   PRACTICE 

Banks  in  the  present  century  as  in  the  other  lines  of  business 
have  specialized  on  account  of  the  demands  of  the  service  re- 
quired by  modern  business  conditions. 

Commercial  and  Non-Commercial  Banks 
There  are  two  kinds  of  banks,  the  commercial  and  the  non- 
commercial. The  commercial  banks  include  national  and  state 
banks,  the  banking  departments  of  trust  companies,  and 
private  banks.  National  banks  operate  under  a  national 
charter,  state  banks  under  a  state  charter,  while  private  banks 
are  unincorporated.  In  some  states  private  banks  are  subjected 
to  inspection  by  state  bank  examiners.  Commerical  banks  deal 
especially  in  the  settlement  of  business  transactions  as  they  re- 
ceive deposits  of  cash  against  which  checks  may  be  drawn  by 
a  depositor.  These  banks  are  often  spoken  of  as  banks  of  dis- 
count and  deposit.  They  lend  money  on  short  term  notes, 
discount  negotiable  instruments  such  as  promissory  notes  and 
commercial  drafts,  make  collections,  and  carry  on  any  com- 
mercial transactions  within  the  powers  granted  by  their  charter. 

Savings  Banks 

Savings  banks  are  non-commercial  banks  that  take  small 
amounts  of  savings  on  deposit.  These  banks  afford  a  safe  and 
moderately  profitable  means  of  investing  small  amounts  of 
savings.  They  encourage  persons  of  moderate  incomes  to  form 
habits  of  thrift  by  giving  a  return  on  savings  in  the  form  cf 
interest.  Savings  banks  invest  their  money  on  deposit  in  a 
prescribed  manner  and  only  in  safe  securities. 

Difference  Between  a  Commercial  and  a  Savings  Bank 

One  difference  between  a  commercial  and  a  savings  bank  is 
the  understanding  between  the  depositors  and  the  bank.  A 
commercial  bank  will  pay  the  amount  of  the  checks  of  a  de- 
positor, if  properly  signed  by  him  for  the  amount  for  which 
the  check  is  made  out,  to  the  payee  or  the  person  named  in  the 


BANKING  AND   BUSINESS    PROCEDURE         63 

check  on  or  after  the  date  it  bears,  provided  the  depositor  has 
sufficient  funds  on  deposit  in  the  bank.  Savings  banks  agree 
to  return  any  money  on  deposit  either  to  the  depositor  or  upon 
his  written  order  and  on  the  presentation  of  the  pass  book. 
They  do  not  encourage  demand  withdrawals. 

In  commercial  banks  the  pass  book  is  merely  a  memoran- 
dum of  the  receipt  of  deposits,  and  usually  contains  no  record 
of  the  withdrawals  of  cash  or  added  items  of  interest.  The 
depositor  in  a  savings  bank  can  make  no  withdrawals  of  his 
money  on  deposit  without  producing  his  pass  book  in  which 
the  amount  of  the  withdrawals  is  entered  by  the  bank  clerk. 
The  pass  book  of  any  bank  is  a  receipt  for  the  money  deposited 
and  is  an  acknowledgment  by  the  bank  of  having  received  the 
amount  stated  on  the  deposit  slip. 

Extreme  care  should  always  be  used  in  making  out  a 
deposit  slip  in  a  commercial  bank,  as  it  is  filed  by  the  bank 
clerk  and  is  the  only  legal  evidence  of  the  amount  of  the  de- 
posit, should  an  error  be  made  in  entering  the  amount  of  the 
deposit  in  the  pass  book.  In  order  to  have  evidence  of  the 
original  transaction  banks  require  customers  to  make  out  their 
own  deposit  slips. 

Difference  Between  a  Bank  Note  and  a  Bank  Check 

A  bank  note  is  a  promise  by  the  bank  to  pay  the  face  value 
of  the  note.  It  is  often  called  a  bank  bill.  Bank  notes  pass 
without  endorsement,  and  yield  no  interest  to  their  holders  as 
do  promissory  notes.  A  bank  check  is  an  order  on  a  bank  to  pay 
the  amount  for  which  the  check  is  made  out,  on  demand  or 
order  of  the  payee  (the  person  named  in  the  check).  The 
check  is  always  signed  by  a  depositor  of  the  bank  upon  which 
the  check  is  drawn  against  funds  on  deposit. 

Federal  Reserve  Banks 

In  1863  Congress  passed  the  National  Bank  Act  providing 
for  Federal  supervision  of  commercial  banks,  thus  securing  uni- 


64  OFFICE    PRACTICE 

formity  in  the  operation  of  commercial  banks  throughout  the 
United  States.  In  1913  the  Federal  Reserve  Act  was  passed 
dividing  the  entire  country  into  twelve  Federal  Reserve  Dis- 
tricts, a  Federal  reserve  bank  being  located  in  each  district  as 
follows : 

Federal   Reserve  Location  of  Federal 

District  Number  Reserve  Banks 


1  Boston 

2  New  York 

3  Philadelphia 

4  Cleveland 

5  Richmond 

6  Atlanta 

7  Chicago 

8  St.  Louis 

9  Minneapolis 

10  Kansas  City 

11  Dallas 

12  San  Francisco 

National  and  Federal  Reserve  banks  may  issue  money.  A 
National  bank  note  is  the  promise  of  a  national  bank  to  pay 
the  holder  the  amount  named  on  the  note.  The  notes  issued 
by  each  national  bank  are  secured  by  a  deposit  of  United 
States  bonds  with  the  Treasurer  of  the  United  States  by  the 
bank  issuing  the  notes. 

The  Federal  Reserve  banks  are  allowed  to  issue  Federal 
Reserve  bank  notes  and  to  take  over  the  promissory  notes  and 
acceptances  from  National  banks;  they  are  also  permitted  to 
issue  Federal  Reserve  notes  on  their  securities,  which  they  hold 
plus  an  additional  specified  gold  reserve. 

A  Federal  Reserve  note  is  issued  by  a  Federal  Reserve  bank 
to  serve  as  an  emergency  currency  and  the  Federal  Reserve 
System  provides  for  a  money  reserve  for  the  existing  banks  in 
case  of  any  emergency. 

The  Federal  Reserve  bank  is  a  bank  for  banks,  as  it  assists  all 
banks  within  its  district.  Money  may  be  transferred  from  one 


BANKING  AND    BUSINESS   PROCEDURE         65 

Federal  Reserve  district  to  another  as  needed.  If,  for  example, 
the  Federal  Reserve  Bank  of  Boston  is  in  need  of  money  it  may 
rediscount  its  commercial  paper  at  the  Federal  Reserve  Bank 
in  New  York  or  Philadelphia,  and  thereby  obtain  money 
where  it  is  in  abundance.  This  system  has  prevented  financial 
panics  in  recent  years. 

Postal  Savings  System 

The  United  States  Government  authorized  the  establishment 
of  the  Postal  Savings  System  by  an  Act  of  Congress,  June  25, 
1910.  Any  person  ten  years  of  age  or  over  may  open  a  postal 
savings  account  in  his  or  her  own  name  by  depositing  one  or 
more  dollars  in  any  post  office  authorized  to  accept  postal 
savings  deposits.  No  person  may  at  the  same  time  have  more 
than  one  account  either  at  the  same  office  or  at  different  post 
offices.  A  person  may  deposit  any  number  of  dollars  at  any 
time,  until  the  balance  to  his  credit  amounts  to  $2500,  ex- 
clusive of  the  accumulated  interest.  After  an  account  has  been 
opened  in  the  postal-savings  depository,  deposits  may  be  made 
in  person,  by  a  representative,  by  money  order,  or  by  registered 
mail. 

Postal  Savings  deposits  are  acknowledged  by  postal 
savings  certificates  which  are  made  out  in  the  name  of  the 
depositor  and  serve  as  receipts.  A  depositor  may  at  any  time 
withdraw  all  or  any  part  of  his  postal  savings  deposits  upon 
demand,  from  the  post  office  where  the  deposits  were  made. 
Postal  savings  certificates  bear  simple  interest  at  the  rate  of 
two  per  cent  a  year.  Amounts  less  than  one  dollar  may  be 
saved  by  purchasing  postal  savings  stamps  at  ten  cents  each. 
A  postal  savings  card  with  ten  savings  stamps  affixed  will  be 
accepted  as  a  deposit  of  one  dollar  either  in  opening  a  postal 
savings  account  or  in  adding  to  an  existing  account,  or  it  may 
be  redeemed  in  cash. 

A  depositor  may  transfer  his  account  from  one  post-office 
postal-savings  depository  to  another  without  losing  the  interest 


66  OFFICE    PRACTICE 

on  his  account.  A  depositor  may  exchange  the  whole  or  a 
part  of  his  deposits  for  registered  or  coupon  United  States 
postal-savings  bonds,  bearing  two  and  a  half  per  cent  interest, 
issued  in  denominations  of  $20,  $100,  and  $500.  When  bonds 
are  issued  in  exchange  for  postal  savings  deposits  the  balance 
to  the  credit  of  the  depositor  is  reduced  accordingly,  and 
he  may  make  further  deposits  until  his  account  reaches  $2500. 

Loan  and  Trust  Companies 

Loan  and  Trust  Companies  are  non-commercial  banks. 
Some  of  them  combine  a  commercial  banking  business  with 
their  loan  and  trust  business.  These  trust  companies  may 
invest  their  funds  in  real  estate  and  in  loans  on  inactive  securi- 
ties for  long  periods  of  time.  They  act  as  holders  in  trust  for 
bondholders,  executors,  and  administrators  of  estates,  of  money 
property  held  in  trust,  and  as  fiscal  agents  for  corporations, 
and  as  guardians  to  minors.  In  the  capacity  of  fiscal  agent 
they  pay  to  bondholders  the  principal  of  bonds  at  the  date  of 
maturity  or  pay  the  interest  when  it  is  due  on  bonds  left  in 
their  charge. 

Trust  Companies  also  administer  underwriting  syndicates 
and  in  case  of  reorganization  or  dissolution  they  act  as  receivers, 
looking  after  the  interest  of  the  bondholders.  The  principal 
advantages  of  trust  institutions  are  that  they  are  permanent 
institutions;  they  are  experienced  in  their  line  of  business,  and 
have  regular  business  hours.  Their  transactions  are  always 
confidential,  and  they  are  in  close  touch  with  the  financial 
world  and  are  therefore  better  informed  as  to  financial  trans- 
actions than  most  individuals. 

The  Numerical  Transit  System 

The  Numerical  Transit  System  is  a  time  and  labor  saving 
device  in  banking,  which  designates  geographical  locations  or 
places  and  banks  by  number  instead  of  by  name  and  address. 
William  H.  Kniffin,  Vice  President  of  the  Rockville  Center, 


BANKING  AND   BUSINESS   PROCEDURE        67 

N.  Y.,  bank,  explains  this  in  his  text,  "The  Business  Man  and 
his  Bank,"  as  follows: 

"At  the  right  of  the  name  of  the  bank  on  most  checks  there 
will  be  found  a  small  number,  thus  '1-8.'  This  is  the  'transit 
number'  of  the  bank  and  will  identify  it  in  any  bank.  About 
1910  the  American  Bankers  Association  adopted  the  plan  of 
giving  a  number  to  every  bank  in  the  United  States,  this  number 
to  follow  the  name  of  the  bank  on  its  checks.  The  large  cities, 
as  New  York,  Chicago,  Boston,  Philadelphia,  etc.,  were  given 
numbers  from  one  to  forty-nine  and  the  clearing-house  number 
was  added.  Numbers  from  fifty  to  ninety-nine  are  used  to 
designate  the  different  states  of  the  country.  In  referring  to 
the  National  City  Bank  of  the  City  of  New  York,  in  banking 
circles  the  numerals  'i— 8*  are  sufficient,  meaning  City  No.  i, 
New  York,  and  bank  No.  8  in  the  clearing  house,  which  is 
the  National  City  Bank." 

Banks  in  the  state  of  New  York  outside  of  the  city  of  New 
York  are  numbered  50  while  the  banks  in  the  state  of  Con- 
necticut are  numbered  51.  The  transit  number  of  the  checks 
of  the  First  Stamford  National  Bank,  of  Stamford,  Connec- 
ticut, is  51-108,  the  prefix  51  indicating  that  the  geographical 
location  of  this  bank  is  in  the  state  of  Connecticut  and  that 
1 08  is  the  clearing  house  number  of  this  bank. 

The  Clearing  House 

The  preamble  of  the  New  York  Clearing  House  states  its 
purpose  as  follows:  , 

"The  object  of  the  association  shall  be  the  effecting  at  one 
place  of  the  daily  exchanges  between  the  members  thereof  and 
the  payment  at  the  same  place  of  the  balance  resulting  from  such 
exchanges."  The  object  of  the  clearing  house  is  to  facilitate 
an  easy  and  rapid  method  of  exchange  of  checks  collected  and  of 
checks  drawn  by  member  banks  of  the  clearing  house.  Two 
clearings  are  made  in  the  New  York  Clearing  House,  one  at 


68  OFFICE   PRACTICE 

nine  o'clock  and  the  other  at  ten  o'clock.  The  balance  of  the 
first  clearings  are  carried  over  and  included  in  the  final  clear- 
ings at  ten  o'clock,  when  one  settlement  is  made. 

The  term  " clear"  means  exchange,  as  the  bank  that  clears  a 
check  simply  exchanges  it  for  another  check  drawn  on  itself. 
All  checks  received  through  the  clearing  house  are  assorted. 
The  checks  of  each  bank  are  placed  in  a  package,  the  amount 
having  been  listed  on  an  adding  machine,  and  the  total  written 
on  the  envelope  in  which  the  package  of  checks  is  enclosed. 
The  transit  number  on  checks  assists  the  clearing  house  clerk  as 
he  makes  up  the  list  of  banks  using  their  transit  number  in  place 
of  writing  the  name  and  the  address  of  each  bank.  For  example, 
it  is  more  efficient  to  record  51-108  and  the  amount  of  the 
checks  drawn  against  this  bank  than  to  write,  "The  First 
Stamford  National  Bank,  Main  Street,  Stamford,  Connecti- 
cut." 

Each  bank  at  clearing  time  has  a  representative  present 
who  has  all  the  checks  which  his  bank  holds  against  other 
banks  and  another  representative  who  receives  all  the  checks 
drawn  against  his  bank,  from  other  banks.  The  clearing  is 
done  on  the  stroke  of  a  signal  bell.  Each  member  bank  has  a 
desk  arranged  in  an  order  as  established  by  the  clearing  house. 
The  representatives  of  the  different  banks  exchange  checks 
and  within  a  few  minutes  each  bank  representative  can  ascer- 
tain the  amount  his  bank  owes  to  other  banks  or  the  amount 
they  owe  to  his  bank. 

In  the  New  York  Clearing  House  the  settlement  of  balances 
is  now  made  by  debiting  or  crediting  the  amounts  to  the 
accounts  of  the  various  banks,  thus  avoiding  the  use  of  money. 
In  other  clearing  houses  throughout  the  United  States  the,settle- 
ment  between  banks  is  made  by  checks.  The  New  York 
Clearing  House,  in  order  to  encourage  efficiency  and  accuracy 
on  .the  part  of  the  members,  imposes  a  fine  of  from  one  to 
ten  dollars  for  errors  in  the  work  done  by  the  representatives 
at  the  clearing  house. 


BANKING  AND   BUSINESS   PROCEDURE        69 

Checks 

The  modern  business  man  uses  checks  as  a  substitute  for 
money  in  the  transaction  of  business.  In  fact  business  in  the 
United  States  is  carried  on  almost  entirely  by  one  medium  of 
exchange,  the  check.  Currency  is  good  enough  for  the  small 
affairs  of  life,  for  the  incidentals  of  the  day.  It  is  not  the 
Federal  reserve  notes,  the  National  Bank  notes,  the  gold  or 
silver  or  the  smaller  coins,  but  the  bank  check  which  is  used  by 
every  business  concern  in  America.  The  American  check 
system  serves  as  the  model  for  all  other  nations,  for  in  no  other 
country  has  the  check  attained  such  prominence  in  exchange 
transactions. 

The  transfer  orders  issued  by  the  goldsmiths  of  London, 
which  permitted  the  withdrawal  of  the  funds  entrusted  to 
their  safekeeping,  was  the  forerunner  of  the  modern  check. 
A  check  gives  one  the  right  to  suppose  that  the  maker  of  the 
check  has  on  deposit  in  the  bank  named  in  the  check  a  sum 
equivalent  to  the  amount  named.  Gold  as  a  medium  of  ex- 
change is  almost  never  visible,  being  used  mostly  as  gifts,  and 
is  never  carried  as  money  by  persons  living  east  of  the  Rocky 
Mountains.  Since  the  World  War  the  use  of  paper  currency 
has  been  substituted  for  gold  west  of  the  Rocky  Mountains. 

Checks  represent  money  and  our  present  checking  system 
makes  it  convenient  to  transact  an  enormous  volume  of  business 
with  a  relatively  small  sum  of  actual  coin  and  currency,  or  with- 
out even  the  sight  of  money.  Statistics  show  that  in  the  year 
1920  rriore  than  two  hundred  and  fifty  billion  dollars  in  checks 
were  passed  through  the  New  York  Clearing  House.  When  one 
considers  that  there  are  one  hundred  and  fifty-four  other  clear- 
ing houses  throughout  the  United  States,  and  that  checks 
which  are  cashed  directly  in  the  banks  at  which  they  are  pay- 
able are  not  included  in  these,  he  realizes  the  importance  of 
checks  in  modern  business  transactions. 

In  the  United  States  a  large  proportion  of  the  population 


70  OFFICE    PRACTICE 

keeps  bank  accounts  and  uses  checks.  On  the  other  hand  in 
European  countries  the  use  of  checks  is  limited  because  of  the 
long  formality  of  getting  a  check  cashed.  In  the  United  States 
more  rapid  methods  have  been  developed. 

When  money  was  first  used  as  a  medium  of  exchange  the  great 
difficulty  was  to  prevent  the  debasing  and  the  clipping  of  the' 
edges  of  the  metal  used  in  coining  money.  An  inventor 
discovered  the  way  to  make  the  edges  of  all  coins  serrated  or 
milled  like  a  saw  on  the  edge.  Scientists  devoted  much  study 
to  the  means  of  preventing  our  bank  notes  and  other  commer- 
cial paper  used  in  banking  from  being  imitated.  At  present 
the  United  States  Government  uses  every  means  possible  to 
prevent  counterfeiting,  while  the  business  world  has  invented 
check  protectors  to  prevent  the  alteration  of  the  figures  and 
the  name  of  the  payee  on  checks.  The  National  Bank  notes 
and  the  Federal  Reserve  bank  notes  are  of  the  same  dimen- 
sions, which  makes  it  convenient  in  handling  a  number  of  them. 
No  uniformity  of  size  in  checks  exists  at  the  present. 

Stop  Payment  on  Checks 

One  advantage  of  checks  over  money  lies  in  the  fact  that  a 
check  which  is  lost  or  stolen  may  be  made  valueless  by  stopping 
payment  at  the  bank  on  which  the  check  is  drawn.  The  maker 
of  the  check  is  supposed  to  notify  the  bank,  but  often  the  payee 
or  the  person  to  whom  the  check  is  made  payable  gives  the 
warning  to  the  bank. 

The  stop-payment  order  must  be  in  writing,  and  it  must 
reach  the  bank  before  the  check  is  presented  for  payment.  An 
oral  stop  order  is  not  binding,  neither  is  a  telephone  request, 
while  a  telegraphic  stop  order  would  be  legally  binding  on 
the  bank.  In  filing  a  stop-payment  order  the  date  of  the  check, 
the  number,  the  amount  for  which  the  check  was  made  out, 
and  the  name  of  the  payee  must  be  given. 

A  card  system  is  used  by  the  bank  for  recording  this  data.  This 
card  system  consists  of  making  out  a  separate  card  for  each 


BANKING  AND    BUSINESS    PROCEDURE         71 

stop-payment  order.     Each  card  is  printed  generally  in  red  ink 
as  follows: 

Memorandum  —  Stop  Payment  —  on  the  following  check: 
Amount  of  check  --  —  No.  — 


Payee  —  —  Maker  — 

Date  of  check  — 

The  data  received  from  the  depositor  who  wishes  the  pay- 
ment on  the  check  stopped,  is  entered  on  the  card,  and  the 
paying  teller  records  the  facts  on  a  list  which  he  hangs  near 
his  window  for  instant  reference.  The  bookkeeper  and  the 
clerks  make  a  card  record  for  their  use.  The  card  is  then  filed 
alphabetically  under  the  depositor's  name  and  tabbed,  indi- 
cating the  month  payment  was  stopped.  At  the  end  of  each 
month  the  cards  of  two  months  standing  are  removed  and  the 
depositors  are  requested  to  furnish  further  information  and 
instructions  regarding  the  stop-payment  order  which  is  still  in 
force  as  far  as  the  bank  is  concerned.  Under  certain  condi- 
tions, the  maker  of  a  check  is  not  released  from  his  liability. 
See  Whigham's  "Essentials  of  Commercial  Law,"  pp.  187,  189. 

Checks  ought  to  be  deposited  or  cashed  immediately.  All 
bank  tellers  have  keen  memories  for  the  signature  of  their  de- 
positors. An  experienced  teller  can  describe  the  peculiar  char- 
acteristics of  the  signature  of  the  depositors  whose  checks  he 
cashes.  Every  depositor  signs  a  signature  card  when  he  makes 
his  first  deposit  and  opens  a  checking  account  with  a  bank. 
He  must  use  the  same  signature  on  all  checks  he  makes  out 
as  the  bank  is  held  responsible  for  the  signature  only  on  cheecks  . 
These  signature  cards  are  filed  alphabetically  for  reference  if  a 
doubt  arises  as  to  the  signature  on  a  check  which  is  presented 
for  payment  to  the  bank.  (See  page  88.) 

A  check  is  a  written  order  on  a  bank,  by  a  depositor,  and  is 
payable  on  demand.  The  person  who  signs  the  check  is  the 
drawer,  the  person  named  in  the  body  of  the  check  after  the 


72  OFFICE   PRACTICE 

words  "pay  to"  is  the  payee,  or  the  person  to  whom  the  check 
is  made  payable.  The  bank  on  which  the  check  is  drawn  is  the 
drawee.  The  words  "or  order"  on  a  check  make  it  negotiable, 
or  payable  to  some  one  else  besides  the  person  named  in  the 
check,  if  the  person  named  in  the  check  indorses  his  name  on 
the  back  of  the  check  exactly  as  the  name  is  written  on  the 
face  of  the  check. 

Indorsement  of  a  Check 

If  a  check  is  payable  to  the  order  of  the  person  named  in  the 
check,  the  person  so  specified  must  indorse  the  check  (write 
his  name  on  the  back  of  the  check)  exactly  as  it  is  written  on 
the  face  of  the  check.  This  indorsement  for  example  would  be 
as  follows;  If  drawn  to  the  order  of  Mary  A.  Brown  it  will  not 
do  to  indorse  the  check  as  M.  A.  Brown.  It  must  be  Mary  A. 
Brown. 

If  a  check  is  indorsed  (name  written  on  back)  pay  to  Mary  A. 
Brown,  and  the  payee  signs  her  name  below,  this  check  becomes 
the  property  of  Mary  A.  Brown  only;  but  if  the  payee  had 
written  "Pay  to  the  order  of  Mary  A.  Brown"  and  had  signed 
her  name  underneath,  it  would  then  be  negotiable  and  trans- 
ferable by  Mary  A.  Brown  to  any  other  person.  If  the  name 
of  the  payee  is  mis-spelled  on  the  face  of  the  check  the  payee 
should  first  write  it  on  the  back  of  the  check  exactly  as  it  ap- 
pears on  the  face  of  the  check,  but  underneath  the  name  should 
be  written  correctly,  as : 

Marie  Brown  (as  on  the  face  of  the  check) 
Mary  A.  Brown  (correctly  written) 

The  only  alteration  allowed  on  a  check  is  that  the  name  of 
the  bank  printed  on  the  check  may  be  erased  and  the  name 
of  another  bank  in  which  the  drawer  of  the  check  has  funds  on 
deposit  subject  to  his  check,  may  be  substituted;  e.  g.,  a  check 
on  the  Corn  Exchange  Bank  could  be  used  by  a  person  having 
funds  on  deposit  in  the  Stamford  National  Bank  if  the  words, 


BANKING  AND   BUSINESS   PROCEDURE 


73 


Corn  Exchange  Bank,  were  crossed  off  and  the  words,  Stamford 
National  Bank,  were  written  in.  This  is  a  very  poor  policy  to 
follow,  and  many  banks  object  to  this  practice.  . 

A  check  becomes  a  receipt  or  voucher  after  it  has  been  paid 
by  a  bank.  Canceled  checks  or  vouchers  are  returned  by  the 
bank  to  the  drawer  and  may  be  verified  and  filed  numerically 
for  reference. 

Certified  Checks 

When  a  bank  cashier  "Certifies"  or  writes  his  name  across 
the  face  of  a  check  it  is  a  guarantee  that  the  drawer  has  suffi- 
cient funds  on  deposit  in  the  bank  named  in  the  check  to  pay 
the  amount  named.  The  bank  assumes  the  liability  for  the 
payment  of  the  certified  check,  and  the  amount  stated  in  the 
check  is  immediately  withdrawn  from  the  amount  the  drawer 
has  on  deposit  subject  to  his  check.  The  amount  or  the  face  of 
the  check  which  has  been  certified  by  the  cashier  is  then  held  by 
the  bank  until  the  certified  check  is  presented  for  payment. 

A  canceled  check  or  voucher  returned  by  the  bank  is  a  re- 
ceipt for  the  items  for  which  the  check  paid.  Many  checks 
have  the  following  on  the  back: 


No  receipt  is  required.      Return,  if  not  correct, 
full  the  following  items: 


This  check  pays  in 


Date 

Amount 

Credit 

Discount 

Net  Amount 

How  to  Make  Out  a  Check  and  Check  Stub 

In  writing  a  check,  observe  that  there  are  two  parts — the 
stub  and  the  body  of  the  check.  Fill  out  the  stub,  first  entering 
the  number  of  the  check,  the  date,  the  name  of  the  payee  or 
the  person  to  whom  the  amount  named  in  the  check  is  to  be 
paid,  and  what  the  check  was  made  out  for. 


74 


OFFICE   PRACTICE 


The  stub  of  the  check  is  a  piece  of  paper  which  remains  in 
the  book  after  the  check  is  torn  out.  The  stub  shows  the  de- 
posits made,  the  amount  for  which  the  check  was  made  out, 
and  after  subtracting  the  amount  of  the  check,  how  much  money 
remains  in  the  bank  to  the  credit  of  the  depositor. 


DE  POSITS 


AMOUNT 


DRAWN 


BALANCE  FORD 


7f  off 


fg  DATE  <J£  f£    ^ I9<£*1 


TOTAL  DEPOSITS 
LESS  CHECKS  DBA  WN 
BALANCE  FORWARD 


UL2.:££± 


CHECK-BOOK    STUB 


The  information  contained  on  the  stub  of  the  check  book  is 
used  in  reconciling  the  bank  balance  and  the  check  book  bal- 
ance, as  explained  in  the  text. 

To  make  out  a  check  properly  on  a  regular  blank  form  issued 
by  the  bank,  it  is  necessary  to  write  the  number  of  the  check, 
the  date,  the  name  of  the  person  in  whose  favor  it  is  made 
out  (payee)  and  the  amount  for  which  it  is  to  be  made  out, 
written  in  figures  and  in  full.  The  amount  of  the  check  must 
also  be  made  out  in  words  preceding  the  printed  word  "Dol- 
lars" in  the  body,  while  the  person  making  out  the  check  must 
write  his  signature  in  the  lower  right  hand  corner  and  must 
have  money  on  deposit  in  the  bank  on  which  the  check  is 
drawn. 

Checks  are  seldom  made  out  for  less  that  (#i)  one  dollar, 
but  whenever  they  are,  the  word  "Dollars"  should  be  canceled 
by  drawing  a  double  wave  line  through  it  and  writing  in  words, 
the  amount  for  which  the  check  is  made  out,  as — ONLY  SIXTY 


75 


92 


Dollars 


Nov.  5 


co 


ord,  Connec 


Sta 


d 

03 
CO 

ffi 


/a 


"H 

o 

<L> 


O 

o 

T-H 

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03 


H 

o 

H 


76  OFFICE   PRACTICE 

CENTS — in  the  body,  while  60  CENTS  must  be  written  where 
the  figures  ordinarily  would  be  written. 

If  a  check  is  made  out  for  an  exact  amount  of  dollars,  no 
must  be  written  above  the  dash  and  100  below,  as  $6  no/ioo. 
It  may  be  written  xx/ioo  or  00/100. 

Checks  reflect  the  credit  of  the  maker,  therefore  care  must 
be  used  in  reference  to  insufficient  funds  to  meet  payment  and 
stopping  payment  or  dating  checks  ahead  of  the  date  when  the 
check  is  given. 

A  draft  is  a  written  order  in  which  one  person  directs  another 
person  to  pay  a  specified  sum  of  money  either  to  the  order  of 
himself  or  to  the  order  of  a  third  person  named  in  the  draft. 

A  bank  draft  is  a  check  drawn  by  one  bank  on  another  bank. 
In  the  bank  draft,  p.  75,  the  Second  National  Bank  is  the 
drawer,  H.  Stanley  Finch  is  the  payee,  and  the  Corn  Exchange 
Bank  is  the  drawee. 

Drafts  are  used  in  business  in  the  settlement  or  canceling  of 
indebtedness  without  the  risk  or  inconvenience  of  transmitting 
legal  tender  or  money  from  one  geographic  section  of  the  country 
to  another.  The  parties  are: 

I — Drawer — One  who  writes  or  draws  the  draft  and  whose  name  is 
written  in  the  lower  right  hand  side  of  the  draft. 

2 — Drawee — One  on  whom  the  draft  is  drawn  and  who  must  pay  it, 
whose  name  is  preceded  by  the  word  "To." 

3 — Payee  —  One  to  whom  the  money  is  to  be  paid.  His  name  is 
written  in  the  body  of  the  draft. 

Drafts  are  generally  used  as  a  means  of  collecting  debts. 
If  a  customer  in  Chicago  owes  $500  to  a  firm  in  New  York,  and 
this  firm  in  New  York  owes  a  creditor  in  Chicago,  the  firm  in 
New  York  writes  and  makes  arrangement  with  the  firm  in 
Chicago  to  pay  the  $500  to  their  creditor  in  that  same  city; 
thus  both  debts  are  canceled  without  any  inconvenience  on  the 
part  of  either  person  concerned  in  the  business  transaction. 

As  an  example  the  following  Sight  Draft  is  explained: 


OJ 

IM 

1 

1 

= 

irf 

3 

_ 

CJ 

1 

I? 

H 

J 

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O 

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03          O 

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T-H 

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S1  -s   1 

^  .    ±j      .S 

fcJO                            <U 
'c«           ^           cj 

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H 

77 


78  OFFICE   PRACTICE 

Brown  and  Smith  both  carry  on  business  in  Chicago,  Illi- 
nois. F.  E.  McGill,  of  Stamford,  Conn.,  owes  $500  to  Henry 
Brown,  of  Chicago,  111.  George  Smith,  of  Chicago,  111.,  owes 
F.  E.  McGill,  of  Stamford,  Conn.,  $500.  F.  E.  McGill  makes 
out  the  above  Sight  Draft  and  sends  it  to  George  Smith  of 
Chicago,  111.,  and  asks  Smith  to  pay  Brown  the  $500,  instead 
of  sending  a  check  for  that  amount  to  Stamford,  Conn.,  to 
McGill.  Smith  accepts  the  conditions  of  the  Draft  and  indi- 
cates his  acceptance  and  willingness  by  paying  Brown  the 
$500  which  he  actually  owes  to  McGill. 

If  it  were  a  Time  Draft  he  would  accept  it  by  writing  across 
the  face  of  the  Draft  the  word  "ACCEPTED,"  the  date  and 
his  signature,  and  would  pay  it  on  the  date  it  is  due. 

Smith  pays  Brown,  and  thus  cancels  his  indebtedness  with 
McGill,  while  the  transaction  also  cancels  McGill's  indebted- 
ness with  Brown. 


New  York.   February  28, 


-Three-  months 


ML*30*£  THOU  SAN*  SHE  HUNDRED  SEVEHTT  FIVE  DOLLARS 


Cora  Exchange  Bank.  28th  Street  Branch.  New  York. 


with  interest  at  (,J. 
May  28.  1922 


PROMISSORY    NOTE 

A  Promissory  Note  is  the  written  promise  of  the  maker  or 
person  who  signs  the  note  to  pay  to  the  person  named  in  the 
note,  to  his  order  or  to  the  bearer,  a  specified  sum  of  money 
which  is  named  in  the  note.  The  payment  is  to  be  made  at  a 
specified  time  and  place,  usually  at  the  bank  named  in  the 
note  or  at  the  place  of  business  of  the  maker  of  the  note. 


BANKING  AND   BUSINESS   PROCEDURE        79 

Note  the  difference  between  a  Draft  and  a  Promissory  Note.  A  Draft  is  an 
order  to  pay  the  sum  named  in  the  Draft.  It  is  drawn  on  a  person,  and  is 
usually  drawn  to  effect  a  prompt  cancellation  of  a  debt.  A  Promissory  Note  is 
a  promise  to  pay  the  sum  named  in  the  note  and  is  drawn  by  the  person  who 
promises  to  pay  the  note  and  is  usually  drawn  in  order  to  borrow  money,  which 
the  borrower  expects  to  repay  within  the  time  named  in  the  note. 

Form  of  a  Certificate  of  Deposit 
$500  00/100  SECOND  NATIONAL   BANK 

Stamford,  Conn.,  November  25,  1921 
John  H.  Keating  has  deposited  in  this  bank 
Five  hundred  00/100 Dollars 

payable  to  the  order  of  himself  on  the  return  of  this  certificate  properly 
indorsed. 

H.  S.  Mead, 
No.  94  Cashier 

A  certificate  of  deposit  is  a  written  statement  issued  by  a 
bank  to  a  person  who  deposits  money  for  safe-keeping.  It 
contains  the  promise  of  the  bank  to  return  the  specified  sum 
on  the  return  of  the  certificate.  A  certificate  of  deposit  is  of  the 
nature  of  a  promissory  note. 

Indorsement  of  commercial  papers  is  a  statement  and  signa- 
ture written  on  the  back  of  the  paper,  and  is  usually  for  the 
purpose  of  transferring  the  paper  to  some  one,  or  to  add  to 
its  security,  or  in  the  case  of  a  mortgage  note  to  record  partial 
payments  on  the  principal  or  face  of  the  note. 

The  important  kinds  of  indorsements  are: 

1.  Blank  indorsement,  as:   Florence  E.  McGill — the  name  only  of  the 

indorser. 

2.  Special — Pay  to  the  order  of 

The  Gregg  Publishing  Company 

Florence  E.  McGill 

This  form  directs  payment  to  a  specified  person,  to  order  or  to 
bearer. 


8o  OFFICE   PRACTICE 

3.     Qualified — Without  Recourse 

Florence  E.  McGill 

or 
Pay  to  the  order  of 

The  Gregg  Publishing  Company 
Without  recourse 

Florence  E.  McGill. 

The  words  "without  recourse"  excuse  the  indorser  from  further 
liability  of  payment. 

Protection  of  Checks 

Many  devices  are  used  by  business  concerns  in  order  to 
protect  their  checks  from  alteration.  Checks  have  been  altered 
by  changing  the  date,  by  removing  the  name  of  the  payee 
and  inserting  "Bearer"  and  in  some  cases  where  the  amount 
for  which  the  check  is  made  out  is  small  a  higher  amount  is 
inserted. 

When  an  altered  check  is  presented  at  the  bank  on 
which  it  is  drawn  the  money  is  sometimes  paid,  because 
the  signature  of  the  maker  of  the  check  is  recognized  by  the 
bank  teller.  The  bank  has  the  signature  cards  of  their  deposi- 
tors on  file  for  reference,  and  as  they  are  responsible  for  the 
signature  of  the  maker  of  a  check  drawn  on  their  bank,  if  the 
signature  is  a  forgery  and  the  bank  teller  pays  the  amount  of 
the  forged  check,  the  bank  must  refund  the  amount  paid  on 
the  forged  check. 

As  the  bank  is  held  responsible  for  the  signature  only, 
the  maker  of  a  check  must  protect  the  amount  and  the 
name  of  the  payee.  The  "pen  change"  which  is  a  common 
method  of  alteration  of  checks  is  usually  due  to  carelessly 
written  checks.  A  word  or  a  syllable  is  sometimes  added 
where  blank  space  has  been  left  on  the  line  for  the  written 
amount.  A  check  should  be  carefully  written  leaving  no 
blank  spaces  at  the  beginning,  the  end,  or  between  the  words 
of  the  written  amount,  and  the  letters  composing  the  words 
should  be  written  plainly  and  clearly  formed. 


BANKING  AND   BUSINESS   PROCEDURE        81 
The  model  below  is  a  properly  written  check: 


Bar  TO  THE 


Gregg  Hp/tgfyhQ  CflfTm^flU 


DOLLAHS 


A.  Specimen  is  the  maker,  The  Gregg  Publishing 
Company  is  the  payee,  and  the  drawee  or  bank  on  which 
the  check  is  drawn  is  The  First  Stamford  National  Bank. 

Among  the  devices  most  commonly  employed  for  protecting 
checks  against  alterations  are  punching  and  check-writing 
machines,  indelible  ink,  sensitive  ink  tints  applied  to  paper, 
and  the  genuine  safety  papej.  The  bank  punch  protects  the 
amount  of  the  check  by  punching  the  figures  through  the 
paper,  the  perforations  appearing  as  a  series  of  small  round 
holes.  Check-writing  machines  generally  cut  the  amount  in 
figures  or  words  in  the  check  by  a  revolving  cylinder  which 
forces  indelible  ink  into  the  paper.  Some  object  to  these  ma- 
chines as  they  protect  only  the  amount  or  the  name  of  the 
payee.  The  amount,  the  payee's  name,  the  date  and  the  indorse- 
ments must  be  protected.  (See  specimen,  p.  78.) 

Most  banks  use  a  genuine  safety  paper  which  contains 
chemicals  which  are  soluble  and  very  sensitive  to  acids, 
alkalis  or  other  bleaching  agents.  When  this  paper  is 
written  upon,  the  chemicals  tend  to  "fasten"  or  to  absorb 
the  ink.  Any  chemical  agent  which  will  dissolve  and  remove 
the  writing  ink  upon  this  paper  will  likewise  remove  or 


82  OFFICE    PRACTICE 

iffect  the  chemical  dyes  in  the  paper,  thus  producing  a  con- 
spicuous and  readily  detectable  stain,  and  instantly  expose  an 
attempted  fraud.  The  safety  paper  used  in  making  checks 
(National  Safety  Paper)  protects  every  part  of  a  check. 

A  combination  of  a  modern  writing  machine  in  conjunction 
with  safety  paper  would  be  most  effective.  Safety  paper 
furnishes  the  basis  of  protection  to  the  different  parts  of  the 
check  while  the  writing  machine  partially  protects  the  check 
against  ''pen  changes"  and  any  attempt  to  raise  the  check 
so  protected  by  erasure  of  the  words  or  figures  written  by 
the  machine,  would  be  exposed  by  the  appearance  of  the  safety 
paper  after  the  alteration. 

Another  device  used  for  protecting  checks  provides  that  the 
amount  for  which  the  check  is  made  out  be  proof  against 
alteration  by  writing  the  amount  in  the  body  of  the  check 
in  words,  representing  dollars  and  cents  exact  by  writing  a 
complete  word  to  each  stroke  of  the  handle  of  the  device. 
The  company  making  this  protector  issues  to  its  users  a  bona- 
fide  forgery  insurance  policy,  indemnifying  the  user  against 
loss  or  lawsuits  on  checks  written  under  the  terms  of  the  policy. 

• 

Exercises 

i — Make  out  a  check  dated  today  on  the  First  National  Bank  of 

your  city  for  $275.85,  payable  to  Mary  H.  Kane. 
2 — You  owe  The  McGill  Company  $128.75.     Pay  them  by  drawing 

a  check  on  the  Second  National  Bank  of  your  city. 
3 — You  have  received  a  check  from  The  McGill  Company  for  $259 

payable  to  your  order,   but  your  name  is  mis-spelled.     Indorse 

the  check  properly,  and,  by  indorsement,  transfer  the  check  to 

Henry  Peterson  only. 
4 — Write  to  one  of  the  flour  and  grain  companies  nearest  your  city 

and  order  merchandise.     Inclose  a  check  for  the  amount  due  and 

ask  for  a  copy  of  their  latest  price-list. 
5 — Order  merchandise  from  the  grocery  company  nearest  your  city; 

inclose  a  check  for  the  amount  due,  and  express  a  desire  to  have 

the  merchandise  shipped  by  freight  via  the  main  railroad  system 

passing  through  your  city. 


BANKING  AND   BUSINESS   PROCEDURE        83 

6 — Make  out  a  check  for  $253.75  dated  today  on  the  Second  National 

Bank,  making  Henry  Harrison  the  payee. 
7 — You  owe  Thomas  Fairbanks  $67.75.     Make  out  a  check  for  this 

amount  on  the  Second  National  Bank. 

Note:    Record  all  necessary  data  on  the  stub  of  the  check  book. 

Depositors'  Ledger  Kept  by  the  Bank 

A  commercial  bank  must  keep  a  bank  ledger,  also  called  a 
depositor's  ledger,  in  order  to  know  the  balance,  subject  to 
check,  in  each  depositor's  account  at  the  beginning  of  each  day. 

A  depositor  might  overdraw  his  checking  account  if  the 
bank  did  not  keep  this  record  for  ready  reference. 

All  depositors'  names  are  listed  alphabetically  in  this  ledger, 
surname  first.  Then  follows  the  balance  on  the  previous  day 
at  the  close  of  banking  business.  This  balance  shows  the 
amount  deposited  in  that  bank  subject  to  the  check  of  the 
individual  depositor  whose  name  is  written  opposite. 

All  checks  paid  out  by  the  bank  during  the  day  are  listed 
separately  and  entered  under  item,  checks,  opposite  the  name 
of  the  depositor  whose  checks  were  paid  by  the  bank. 

The  total  checks  is  listed  next  showing  at  a  glance  the  total 
amount  of  money  paid  out  of  each  depositors  account  that 
day. 

The  deposits  made  by  each  individual  are  next  listed  showing 
the  total  amount  to  be  added  to  each  depositor's  account  after 
the  total  checks  paid  are  subtracted.  The  individual  deposit 
slips  on  which  the  depositor  has  listed  each  item  separately  are 
filed  alphabetically  for  future  reference  as  only  the  total 
deposits  is  necessary  in  this  ledger. 

At  the  end  of  business  hours  the  clerk  in  charge  of  the 
depositors'  ledger  subtracts  the  total  checks  paid  out  that  day, 
from  each  individual  account,  and  adds  the  total  deposit  made 
by  each  individual,  thus  finding  the  balance  for  beginning 
business  the  next  day. 

Assume  that  you  are  in  charge  of  the  depositors'  ledgers  in 


84 


OFFICE   PRACTICE 


the  Second  National  Bank  in  your  town  or  city,  and  work  the 
following  problem: 

Depositors'  Ledger 

of 
The  Second  National  Bank  of  Stamford,  Conn. 


Name  of  Depositor 

Old  Bal- 
ance 
A.M. 

12/27/20 

Checks 
paid 

Total 
Checks 

Deposits 

Balance 
Subject  to 
Check  (Next 
Day) 

12/28/20 

Aaron,  David  H. 

1296.52 

150.50 
25-75 

? 

85-50 

? 

Adamson,  Henry  L. 

875-45 

245-34 

70.25 

? 

1  20.00 

? 

Andrews,  James  H. 

2145.89 

158.45 

234.85 
35-25 

? 

85.25 

? 

Bracken,  Mary  A. 

4I53-65 

2150.50 

? 

? 

Brown,  Charles  D. 

425.65 

110.15 
37.85 

? 

35-75 

? 

Cooke,  George  H. 

673.55 

45.65 

? 

p 

Davidson,  Frank  S. 

I345.67 

35745 
25-36 

? 

75.25 

? 

Edwards,  Helen  G. 

183.65 

45.63 
10.50 
5.64 

? 

55-75 

p 

Fallen,  Lillian  H. 

I575.65 

34.65 
5.87 
56.90 

? 

105.50 

? 

Faucett,  George  H. 

546.67 

.,- 

? 

? 

Groegan,  Grace  M. 

75-68 

23-50 

? 

? 

Hogan,  Williairt  H. 

1678.63 

? 

? 

BANKING  AND   BUSINESS   PROCEDURE        85 

In  bank  ledgers  the  headings  are  repeated  across  the  top 
of  the  book  to  avoid  copying  the  names  of  the  depositors  every 
day. 

Assignment: 

Find  the  total  checks  paid  by  the  bank  from  each  depositor's 
account. 

Find  the  balance  subject  to  each  depositor's  check  at  the 
close  of  business  on  the  above  date. 

Note: 

With  the  above  data  the  bank  could  find 

1.  The  total  amount  paid  out,  12/27/20,  on  checks. 

2.  The  total  amount  received  on  deposit,  12/27/20. 

3.  The  total  amount  of  money  on  hand  subject  to  check  accounts 

of  depositors. 
The  Auditor's  journal  of  checks  and  deposits  will  illustrate  this. 


9/3%9 


Auditor's  Journal  of  Checks  and  Deposits 
Bookkeeper's  Signature 


Old 
Balances 

Checks  in  Detail 

jDate 

Deposits 

Balance 

Depositors 

876908.76 

78654.88    9870.31  1326.54 

106453.23 

893510.26 

Brought  forward 

475-29 

35.19        45-00      50.00 

(9/30/19) 

10.  oo         5.17      18.00 

" 

1.50 

30 

310.43 

Sayer,  A.  C. 

275.63 

15.00      35.00     13.92 

125.88          5.16        3.00 

30 

20.63 

2500.00 

2598.30 

Seaman  &  Co. 

750.02 

25.12        18.00        25.00 

. 

4.50       3.80      7.92 

75.17      25.25     50.00 

5.00        9.99       6.45 

1.50            2.00 

30 

490.32 

Smith  &  Smith 

3575.17 

50.22          75.09        45-13 

4-54 

30 

475.81 

3876.00 

Sterling  Farm 

350.93 

4.12          3.62         5.00 

25.00        50.95 

30 

262.24 

Terry,  C.  E. 

250.65 

50.00      159.00       6.00 

IO.O2           25.00        56.56 

8.03        3.50       5.00 

30 

O.D.  72.46 

Tilghman,  R.  A. 

675-45 

50.12       75.90     35.29 

125.16 

30 

500.00 

888.98 

Torrey,  H.  &  Son 

525.53 

76.66       8.54      4.56 

30 

435-77 

Tourette  J.  J. 

22856.34 

180.00        56.98        9.99 

25.00        45.00 

30 

22539.37 

Unger  &  Thiel 

550.55 

76.67      45.45     56.23 

25.00       50.50     18.00 

5.00 

30 

273.70 

Utterman,  C.  H. 

375.62 

50.00     125.82     56.87 

86 


OFFICE   PRACTICE 


Auditor's  Journal  of  Checks  and  Deposits — Continued 


4.50    5.60    8.90 

30 

1272.61 

1396.54 

Wagner  Bros. 

105.56 

8.34    5-00   75.56 

10.00    17.00 

30 

79-66 

Wahl,  M.  A. 

456.45 

44.40   34.21   50.00 

113.50   105.49    3-50 

45-25    50.00   18.00 

5-12 

30 

13875.00 

13861.98 

Warren  &  Son 

10635.82 

183-33    46.90   26.00 

3.00   45-70    5.00 

7.00   10.00 

30 

10308.80 

Weil  Co. 

129.57 

12.90    6.00    2.^5 

85.00    9.82    6  70 

2.50   ii.  oo   25.00 

30 

852.47 

820.37 

Wheeler,  O.  J. 

201.57 

2.50   12.75   20.00 

40.00   58.65    1.25 

30 

450.00 

516.42 

Wilson&Co.,R.B. 

919188.91 

80286.62  11163.15  2042.12 

126399.75 

952096.77 

Totals 

Total       (  80286.62  Note:      R.    A.    Tilghman   has   overdrawn   his   account, 

checks     •<  11163.15  Hib  old  blance  is  $250.65.       They  exceed  his  balance, 

paid         {    2042.12  His  checks  in  detail  $323.11.    Subject  to  check  by  §72.46. 

Verify  on  the  calculating  machines,  the  following: 

I — The  total  of  the  old  balance 

2 — The  total  of  the  checks  paid  out  September  30,  1919.  by  the  bank, 

according  to  the  auditor's  statement 
3 — The  total  deposits  received  on  September  30,  1919 
4 — The  total  balance  and  the  balance  subject  to  the  check  of  each 

depositor 

Elliott-Fisher  Bank  and 

Trust  Co. 
Harrisburg,  Pa. 


ACCOUNT      No.  1945 

NAME  R.  B.  Woolson  &  Co. 

ADDRESS       2592  Third  St.,  City. 


Old  Balance 

Checks  in  Detail 

Date 
1919 

Deposits 

Balance 

Depositor 

Balance 

brought 

Aug. 

forward 

633.79 

R.  B.  Woolson  &  Co. 

633.79 

12.75    125.50        i.  75 
5-00 

6 

488.79 

R.  B.  Woolson  &  Co. 

488.79 

8.72      45-32      13.97 

21.  OO             .50          5.00 

1.25 

12 

393-03 

R.  B.  Woolson  &  Co. 

393-03 

25.76      31.00        1.  80 
3.10 

T4 

331-37 

R.  B.  Woolson  &  Co. 

331-37 

15 

200.00 

531-37 

R.  B.  Woolson  &rCo. 

531-37 

125.00     24.35     18.76 

23-70        3-40        5-00 
8.75           -75 

19 

321.66 

R.  B.  Woolson  &  Co. 

321.66 

5.00      12.50         1.75 
12.75         5-00         1.25 

27 

283.41 

R.  B.  Woolson  &  Co. 

283.41 

23-76         1.57      23.87 

i.oo      15.89       2.34 

12.30          .75        7.50 

2.18 

30 

192.25 

R.  B.  Woolson  &  Co. 

Sep. 

192.25 

13.45      2.50    16.72 

3.67      76.20          .40 

2 

500.00 

579-31 

R.  B.  Woolson  &  Co. 

579-31 

120.00        13.50           1.25 

6.10 

4 

438.46 

R.  B.  Woolson  &  Co. 

BANKING  AND   BUSINESS   PROCEDURE        87 


Verification  of  the  Elliott-Fisher  Bank  and  Trust  Co. — Continued 


438.46 

IO.OO 

8 

428.46 

R.  B.  Woolson  &  Co. 

428.46 

i-35      35.64    ioo.  oo 

23-80        1.50       8.70 

2.IO 

12 

255-37 

R.  B.  Woolson  &  Co. 

255.37 

12.00        13.56           I.  00 

2.80        56.25           5.75 

•75          1-87         3-21 

25-00 

16 

I33.I8 

R.  B.  Woolson  &  Co. 

133.18 

125.00         5.00 

18 

3.18 

R.  B.  Woolson  &  Co. 

3.18 

18 

550.25 

553-43 

R.  B.  Woolson  &  Co. 

553-43 

32.75       25.00         1.75 

3.56         8.75       28.75 

1.67 

22 

451.20 

R.  B.  Woolson  &  Co. 

451.20 

8.62         12.78     I20.0O 

18.25 

25 

200.0O 

491-55 

R.  B.  Woolson  &  Co. 

491-55 

50.0O           1.64        I3.IO 

.60        24.35 

26 

401.86 

R   B.  Woolson  &  Co. 

401.86 

5.00      12.75      18.00 

17.10       2.37       1.85 

7.45     52.87        .50 

25.00 

27 

25.0O 

283.97 

R    B.  Woolson  &  Co. 

283.97 

34-50         TO.OO           5.50 

1.  80           4.85        25.00 

•  75 

29 

201.57 

R.  B.  Woolson  &  Co. 

201.57 

2.50      12.75      20.00 

40.00      58.65         1.25 

30 

450.00 

516.42 

R.  B.  Woolson  &  Co. 

The  preceding  account  shows  the  transactions  carried  on  by 
one  depositor,  R.  B.  Woolson  &  Company,  with  his  bank. 

Find  the  following: 

I — -The  total  amount  of  checks  paid  by  the  bank  for  R.  B.  Woolson  & 

Company 

2 — The  total  deposits  made  by  R.  B.  Woolson  &  Company 
3 — The  balance,  August  30,  1919,  subject  to  check 
4 — The  balance,  September  30,  1919,  in  the  Elliott-Fisher  Bank  and 

Trust  Co.,  subject  to  the  check  of  R.  B.  Woolson  &  Company. 

Reconciliation  of  Bank  Balance 

When  a  person  wishes  to  open  an  account  with  a  bank  in 
order  to  be  able  to  draw  checks  against  his  deposit  in  that 
bank,  unless  he  is  personally  acquainted  with  the  officials  of 
the  bank,  he  is  introduced  by  a  friend  or  another  customer  of 
the  bank,  or  he  must  submit  letters  testifying  to  his  character 
and  financial  reliability. 

He  is  then  required  to  fill  out  a  card  similar  to  the  form 
shown  below.  This  card  and  a  signature  card  is  filed  in  the 
records  of  the  bank.  The  bank  requires  a  signature  card  from 
each  depositor  so  that  his  signature  on  checks  or  other  com- 


88  OFFICE   PRACTICE 

mercial  papers  may  be  verified  by  the  paying  teller  or  any 
other  bank  official. 

On  the  form  shown  below  the  signature  card  and  the  card 
on  which  the  name  of  the  depositor,  his  business  address, 
date  of  opening  an  account  with  the  bank,  and  the  nature  of 
his  business  is  given  on  one  card,  thus  making  it  necessary  to  file 
this  data  only  once. 

(MODEL   SIGNATURE  CARD) 

Name 

Business  Address 

The  following  is  my  authorized 

signature  for  the  SECOND   NATIONAL   BANK 


Date  .......  .............. 

Business  ...................... 

After  the  person  has  been  accepted  as  a  depositor  of  a  bank 
he  is  given  a  check  book,  containing  blank  checks  with  at- 
tached stubs.  No  one  is  allowed  to  draw  a  check  on  a  bank 
in  which  he  is  not  a  depositor.  To  avoid  having  a  stranger 
pick  up  a  blank  check  from  the  counter  in  the  outer  office  of  a 
bank  and  make  out  a  check  on  a  bank  in  which  he  is  not  a 
depositor,  several  banks  have  printed  "  Counter  Check  "  in 


[TOP    A8    MEMORANDUM 

t^j^f-  -f  f    log^, 

<v^ 


STAMFORp.Coyy. 


*J 


BANKING  AND   BUSINESS   PROCEDURE        89 


DEPOSITED  TOTHE  CREDIT  OF 


THE  FIRST-STAMFORD  NATIONALBANK 

STAMFORD.CONN. 


large  letters  across  the  entire  face  of  these  checks,  which 
placed  in  a  box  for  the  convenience  of  their  depositors. 

Deposit  slips  are  furnished 
by  a  bank  to  its  depositors. 
The  date  of  the  deposit  and 
the  name  of  the  depositor 
are  entered  by  the  depositor. 
Each  item  of  deposit  is  listed 
separately,  as,  Bills,  Specie, 
Checks  (Name  of  Drawer  of 
the  check  listed  separately 
with  the  amount  to  be  paid 
on  the  check).  After  the 
depositor  makes  out  his  de- 
posit slip  he  hands  it  to- 
gether with  the  funds  listed 
the  slip  and  his  Bank 


are 


CURRENCY. 

SILVER 

GOLD 


CHECKS  AS  FOLLOWS 


on 

Pass  Book  to  the  Receiving 
Teller  at  his  window  in  the 
Bank.  The  Teller  examines 
the  items  listed  on  the  de- 
posit slip,  counts  the  money, 
examines  the  checks  to  see 
whether  they  are  properly 
indorsed,  and  after  verifica- 
tion he  enters  the  amount  of 
the  deposit  in  the  bank  pass 
book  and  returns  the  bank 
pass  book  to  the  depositor. 

Some  commercial  banks  keep  a  regular  cash  book  account 
with  each  depositor  in  each  despositor's  individual  pass  book. 
The  pass  book  is  the  bank's  cash  account  with  the  depositor. 
On  the  receipt  or  debit  side  of  the  pass  book  the  teller  always 
enters  the  amount  of  the  deposit,  and  usually  signs  his  initials 
on  the  line  between  the  date  of  the  deposit  and  the  amount 


TOTAL$ 


DOLLARS 


I92 


CENTS 


9o 


OFFICE   PRACTICE 


of  the  deposit.  In  former  days  the  bank  called  for  the  pass 
book  on  a  certain  date  and  entered  the  amount  of  each  pay- 
ment made  by  the  bank  on  checks  separately  on  the  payment 
or  credit  side  of  the  pass  book.  It  found  the  total  receipts 
by  adding  the  deposits  on  the  debit  or  receipt  side  of  the  de- 
positor's pass  book,  and  the  total  payments  made  on  checks 
by  adding  the  entries  they  had  just  made  on  the  payment  or 
credit  side  of  the  pass  book.  By  subtracting  it  found  the 
bank  balance  or  the  balance  the  depositor  had  in  the  bank 
subject  to  checks  drawn  by  him. 

The  bank  also  listed  the  checks  paid  or  the  canceled  checks 
which  were  enclosed  in  a  package  which  was  then  returned  to  the 
depositor.  The  bank  sent  a  notice  to  all  depositors  to  call  at 
the  bank  for  their  pass  books,  list  of  canceled  checks,  and  notice 
of  their  bank  balance. 

These  days  of  efficiency  have  changed  that  process  and  now 
all  banks  have  adopted  something  similar  to  the  method  used 
by  the  First  National  Bank  of  Stamford,  Conn.,  the  model  of 
which  follows: 


Miss  Florence  E.  McGill 
210  Bedford  Street 

Stamford,  Conn. 


Statement  of  Account 

with 
THE  FIRST  NATIONAL   BANK 

Stamford,  Conn. 
Kindly  report  any  change  of  address. 


Date 

Listed 

Checks 
in  order  of  payment 

Read  Across             Date 

Deposits 

1920 

Balance  brought  forward 

from  last  month 

ttttttttttt 

Mar.  12        tttt 

tttt 

Mar.  15 

tttt 

ttttttttttt 

Mar.  20 

tttt 

ttttttttttt 

Mar.  24 

ttttt 

tttttt 

Mar.  30 

ttttt 

Balance,  April  i,  1920 

ttttttttttt 

Please  examine  this  statement  at  once. 

If  no  errors  are  reported  in  ten  days  the  account  will  be  considered  correct. 

Use  your  bank  pass  book  only  as  a  receipt  when  making  deposits. 


BANKING  AND   BUSINESS   PROCEDURE         91 
On  the  opposite  side  of  the  bank  statement  is  the  following: 

Reconcilation  of  Account  with 
THE   FIRST  NATIONAL   BANK  OF .  STAMFORD,   CONN. 


Checks  Outstanding. 


To  prove  the  balance  as  shown 
on  your  statement 


Number  of 
Check 

Amount  of                           Compare      checks      returned 
Check                               with    checks    listed    on    the 

other  side. 

Sort  the  checks  numerically 
or  by  the  date  issued. 

Check  off  on  the  -  stubs  of 

your  check  book  each  of 
the  checks  paid  by  the  bank 
and  make  a  list  of  the  num- 

bers and  the  amounts  of 

those  checks  still  outstand- 

ing and  list  them  in  the 
blank  opposite.  (Checks 
made  out  by  you  and  mailed 
by  you  but  not  yet  presented 
to  the  bank  for  payment.) 

Add  this  amount  to  the 

balance  shown  in  your 
check  book. 

Total  checks  Outstanding: 

Balance  as  per  check  book:       Total 


Bank  Balance  as  per  Statement:       Total 

This  statement  is  furnished  to  our  customers  instead  of  Balancing 
the  Pass  Book.     It  saves  you  the  trouble  of  bringing  the  Pass  Book 
to  the  Bank  and  waiting  for  it  to  be  balanced.     These  statements  will 
be  found  very  convenient  to  check  up  and  file. 
Use  your  Pass  Book  only  as  a  receipt  book  in  making  deposits. 


92  OFFICE   PRACTICE 

This  is  a  great  improvement  over  the  old-fashioned  way, 
and  is  one  method  that  shows  how  business  houses  have  im- 
proved their  methods  within  the  last  fifteen  years. 

Re-read  the  instructions  and  then  reconcile  the  bank  balance 
and  check-book  balance  on  the  problems  assigned. 

When  the  canceled  checks  or  vouchers  are  returned  from  the 
bank,  verify  the  check-book  balance  with  the  balance  in  the 
bank  of  deposit. 

I — Arrange  the  canceled  checks  numerically. 

2 — Verify  them  with  the  numbers  on  the  stub  of  your  check  book. 
Find  which  numbers  are  missing. 

3 — Place  a  mark  on  the  stub  for  every  canceled  check  or  voucher 
received  from  your  bank.  List  the  number  of  each  check  and  the 
amount  of  each  check  which  the  stub  shows  you  have  made  out 
and  sent  by  mail  to  your  creditors  and  which  have  not  yet  been 
presented  to  the  bank  for  payment. 

4 — Find  the  total  deposits  since  the  last  bank  statement  of  your 
account. 

5 — Find  the  total  amount  of  the  checks  made  out  by  you  since  that 
time  according  to  the  check-book  stubs,  and  also  the  amount  of 
any  checks  not  paid  by  the  bank  to  your  creditors  previous  to  the 
last  statement  made  by  the  bank. 

6 — Subtract  the  total  checks  from  the  total  deposits  made.  This 
will  give  the  true  bank  balance. 

7 — Add  the  total  of  the  checks  still  outstanding  and  not  yet  paid  by 
your  bank  according  to  the  unchecked  stubs  of  the  check  book. 

8 — Add  this  to  the  true  bank  balance  and  it  will  then  agree  with  the 
balance  in  the  bank  subject  to  check  or  the  balance  as  stated  in 
the  bank  statement. 


BANKING  AND   BUSINESS   PROCEDURE        93 


(Model) 
Sept.  i,  1920. 


Total  Deposits  £10205.94 

Total  Checks  as  per 

check-book  stubs  6009.48 


Checks  Outstanding 


True  Bank  Balance  in 

check  book  $  4196.46 


No.  352 
"  361 
"  365 
"  369 


£103.63 

66.37 

90.04 

283.69 


Total  checks  not  yet 

paid  by  the  bank   £543.73 


Check-book  balance          £4196.46 
Checks  outstanding  543-73 

Bank's  balance  or  £4740.19  Note:       The    difference    of 

$543-73  between  the. 
Bank's  ledger  and  the 
check-book  balance  is 
due  to  the  outstanding 
checks  as  explained 
bove. 

Assignment  for  student  to  work: 

You  have  just  recived  the  following  statement  and  canceled 
checks  from  your  bank.  Reconciliate  your  bank  balance  and 
your  check-book  balance  after  you  have  checked  your  stubs. 
You  will  then  file  the  canceled  checks,  alphabetically  using  the 
name  of  the  payee  as  the  name  for  filing. 

Checks  returned  (check  number  40)  #40  for  $35.00,  #42  for 
$125.16,  #43  for  $553.76,  #44  for  $36.50,  #45  for  $75.60,  #47 
for  $1146.37,  #48  for  $185.50,  #49  for  $347.33,  #51  for  $36.50, 
#52  for  $210.50,  #53  for  $1.35,  #54  for  $2.30,  #56  for  $45.50, 
#57  for  $25.00,  #58  for  $56.25,  #61  for  $3.50,  #62  for  $162.38, 
#63  for  $26.00,  #64  for  $3.75,  #65  for  $36.50,  #66  for  $44.27, 
#67  for  $109.15,  #68  for  $2.75,  and  #69  for  $36.90 

The  total  deposits  were  $6813.78.  The  bank  balance  as  in  the 
statement  of  the  bank  was  $3506.36. 

The  following  checks  were  outstanding  after  we  checked  up 


94 


OFFICE   PRACTICE 


the  stubs:    #41   for  $100.15,  #46  for  $56.75,  #50  for  $25.10, 
#55  for  $15.85,  #59  for  $61.45,  #60  for  $72.35. 

Find  the  true  bank  balance  in  the  check  book  on  the  fol- 
lowing, as  of  March  I,  1921: 


Checks  paid  out 


Deposits  made 


#ifor 

#2  for 

#3  for 

#4  for 

#5  for 

#6  for 

#9  for 

#11  for 

#12  for 

#13  for 

#17  for 

#18  for 

#19  for 

#20  for 


$54.40 

235-56 

65-50 

250.75 

450.00 

125.48 

78.74 

50.00 

IIO.OO 

425.35 

4-75 

21.25 

10.15 

278.45 


Old    Balance 
statement 
Feb.       5 
6 

7 

8 

10 

12 


15 

16 
18 


from  the  last 
$2342.25 
452.20 
340.50 
150.70 
525-25 
315.56 
241.38 

375.85 
810.35 
180.89 
350.60, 


Checks  outstanding 

#7  for  $57-50 

#8  for  320.10 
#10  for  42.35 
#14  for  68.50 
#15  for  125.25 
#16  for  4.50 

Find  the  bank  balance  as  of  March  i,  1921. 
Find  the  amount  of  the  checks  outstanding  of  this  date. 
Find  the  true  bank  balance  of  March  I,  1921.     (The  balance 
as  shown  in  the  check  book  subject  to  check). 

The  Payroll 
Payroll,   Payroll   Check,   Currency  Memorandum,  and 

Payroll  Memorandum  for  the  Bank 

The  payroll  of  a  company  contains  the  names  of  the  em- 
ployees, number  of  hours  or  days  each  employee  works,   the 


BANKING  AND   BUSINESS   PROCEDURE        95 

totarl  hours  or  days,  the  wages  by  the  hour  or  by  the  day,  and 
the  total  wages  or  total  salary  due  each  employee.  Employees 
sometimes  must  sign  the  payroll  on  the  line  which  contains 
the  above  data.  This  certifies  that  the  data  is  correct. 

The  payroll  check  is  made  out  for  the  amount  of  the  payroll, 
or  individual  checks  are  made  out  for  each  employee. 

When  companies  make  out  a  check  covering  the  total  amount 
of  the  payroll,  it  is  necessary  for  the  person  in  charge  to  make 
out  a  currency  memorandum  in  order  to  have  the  exact  amount 
of  bills  and  specie  to  place  in  the  individual  envelopes.  This 
is  necessary  when  a  large  number  of  employees  must  be  given 
envelopes  containing  bills  and  specie. 

For  the  convenience  of  the  person  in  charge  of  placing 
the  money  in  the  envelopes,  and  for  the  convenience  of 
the  bank  teller  who  cashes  the  payroll  check  for  that  per- 
son, a  payroll  memorandum  is  made  out  from  the  currency 
memorandum. 

One  of  the  latest  mechanical  inventions  is  the  International 
Payroll  Machine.  This  machine  computes  the  change  list  auto- 
matically the  money  to  be  paid  being  placed,  automatically, 
in  the  envelopes.  A  printed  record  of  each  item  is  kept  in  order 
to  verify  the  payroll.  When  the  money  for  the  payroll  is  re- 
ceived from  the  bank  the  exact  amount  of  the  payroll  is  placed 
in  the  slots  of  the  different  denominations  as  five,  ten,  twenty- 
five,  fifty  cents,  and  pennies.  Bills  may  be  inserted  in  the  pay 
envelopes  by  hand,  while  silver  dollars  may  be  inserted  in  the 
envelopes  automatically. 

The  full  amount  of  each  employee's  pay  is  listed  at  the  time 
the  change  is  being  paid  automatically  into  the  envelopes,  so 
that  a  check  on  the  amounts  in  the  envelopes  is  made  against 
the  payroll  sheet  from  which  they  were  copied.  The  payroll 
clerk  has  a  complete  check  on  the  payroll,  and  the  amount  re- 
ceived from  the  bank  teller  who  cashed  the  payroll  check; 
thus  the  necessity  of  counting  all  the  change  after  it  is 
received  from  the  bank  is  eliminated. 


96  OFFICE   PRACTICE 

Payroll  Memorandum  for  the  bank  teller  when  a  company 
uses  the  International  Payroll  Machine: 

COIN  SCHEDULE 

for 
Payroll  No Date 

To..  ..Bank 


We  request  the  honoring  of  our  check  for  $ 

in  the  following  demonstrations  of  coin,  not  currency. 


Number 

Total 
Number 

Value 

Pennies 

Pennies 

Nickels 

Dimes 

Dimes 

Quarters 
Half—  Dollars 

Dollars  —  Silver 

Dollars  —  Silver 

Twenties  —  Gold 

Twenties  —  Gold 

Twenties  —  Gold 

Tens  —  Gold 

Fives  —  Gold 

.Grand  Total 


Model  Payroll 
Payroll  of  The  McGill- Company  for  the  week  ended. 


.1920 


Name 
of  Employee 

Hours  per  day 

Total 
hours 

Wages 
per 
hour 

Total 
Wages 

Mon 

Tues 

Wed 

Thurs 

Fri 

Sat 

Anderson,  Jennie 

7 

eji 

8 

1^ 

7 

3 

39 

$.30 

$11.70 

Bracken,  Helen 

8 

8 

8 

8 

8 

4 

44 

.28 

12.32 

Clark,  Mary 

8 

8 

5 

4 

8 

4 

37 

.27 

9.99 

Davidson,  Grace 

6 

xX 

7 

8 

8 

4 

38K 

•32 

12.32 

Edwardson,  Alice 

8 

7 

8 

6>< 

8 

4 

4iK 

.28 

11.62 

Total  Payroll 

$57-95 

BANKING  AND   BUSINESS   PROCEDURE        97 


Currency  Memorandum 
(Model)     Bill  and  Specie  Memorandum  for  the  above  Payroll. 


Name 

Total  Wages 

$10 

$5 

$2 

$i 

Soc 

2SC 

IOC 

5c 

1C 

Anderson,  Jennie 
Bracken,  Helen 
Clark,  Mary 
Davidson,  Grace 
Edwardson.  Alice 

11.70 
12.32 
9-99 
12.32 
11.62 

I 

I 

I 
I 

I 

I 
2 

I 

I 
I 

i 

i 
i 

I 
I 

I 

2 
2 
I 

i 
i 

2 

4 

2 
2 

(4) 

(i) 

(4) 

(2) 

(3) 

(3) 

(5) 

(2) 

(10) 

$40 

Js 

$8 

$2 

$iX 

•  75 

•  SO 

,0 

,0 

Total  currency   ) 
.  For  payroll          [  =   SS7'95 


Pour  fro  bills 
One  $5  bill 


Pour  $2  bills 
Two  $i  bills 


Three  soc  pieces 
Three  2$c  pieces 


Five  toe  pieces 
Two  sc  pieces 


Ten  ic 
pieces 


Payroll  memorandum  for  the 
bank  when  the  money  is  inserted 
in  the  pay  envelopes  by  hand. 

The  total  currency  for  the  pay- 
roll equals  $57.95:  Four  $10  bills, 
four  $2  bills,  three  50  cent  pieces, 
five  10  cent  pieces,  one  $5  bill, 
two  $i  bills,  three  25  cent  pieces, 
ten  5  cent  pieces,  and  ten  i  cent 
pieces.  If  the  payroll  sheet  is 
wide  enough,  the  bill  and  specie 
memorandum  may  be  extended 
from  the  side  of  the  payroll. 


PAY  ROLL  SLIP 

THE  FIRST-STAMFORD  NATIONAL  BANK 


DENOMINATIONS 

AMCUNT 

Hundreds 

Fifties 

Twenties 

Tens 

¥ 

4f£> 

00 

Fives 

/ 

J- 

Twos 

V 

g 

00 

Ones 

A 

J_ 

00 

j-o 

Halves 

^3 

/ 

Quarters 

3 

z^_ 

-TO 

/  o 

Dimes 

«T 

Nickel. 

o2 

Cents 

/o  .. 

Total, 

*7 

fj- 

98  OFFICE   PRACTICE 

(MODEL  PAYROLL  CHECK) 

No.  25  Stamford,  Conn.,  March  21,  1921. 

FIRST  STAMFORD  NATIONAL  BANK        51-108 

Pay  to Mary  Johnson  for  Payroll or  order 

Fifty-seven  95/100 Dollars 

#57  95/100  (Signed)  Florence  E.  McGill,  Treasurer 

THE  McGILL  COMPANY. 


Assignment  on  Payroll: 

1.  Make  out  the  payroll  for  the  following  employees  of  The  McGill 
Company,  using  as  a  model  the  payroll  as  given  on  page  96. 

2.  Find  the  total  hours  each  employee  worked  this  week. 

3.  Find  the  total  wages  due  each  employee. 

4.  Make  out  the  payroll  check  and  have  the  chief  clerk  sign  it  for 
the  treasurer.     He  has  power  of  attorney  to  sign  checks. 

5.  Make  out  a  currency  memorandum  for  your  convenience  in  making 
up  the  amount  to  place  in  each  envelope. 

6.  Make  out  a  payroll  memorandum  for  the  bank  teller  who  cashes 
the  payroll  check. 

7.  Write  each  employee's  name  on  a  small  pay  envelope  and  write 
amount  due  in  small  figures  in  the  lower  left-hand  corner. 

8.  When  you  receive  the  money  from  the  bank,  place  in  the  envelope 
the  exact  amount  stated  in  the  lower  left-hand  corner,  and  give 
all  the  envelopes  to  the  paymaster  or  chief  clerk. 


BANKING  AND   BUSINESS   PROCEDURE        99 


List  of  employees  of  The  McGill  Company,  hours  per  day, 
wages  per  hour: 


Name 

M 

T 

W 

T 

F 

S 

Price   per  hour 

Anderson,  Jennie 

8 

6 

6y2 

7 

8 

4 

$  .30 

Bracken,  Helen 

7 

8 

6 

8 

7 

5 

•35 

Clark,  Mary 

8 

7 

7 

7 

5 

6 

.28 

Davidson,  Grace 

9 

8 

6 

8 

8 

5 

•33 

Edwardson,  Alice 

8 

8 

8 

7 

7 

5 

.40 

Frank,  Rebecca 

7 

8 

8 

9 

6 

6 

.38 

Galinsky,  Rose 

734 

6 

7 

8 

3K 

5^ 

.42 

Harris,  Mabel 

6 

7X 

8 

8^ 

8 

4X 

•35 

Iskowitz,  Alice 

8 

7 

7 

8 

7 

5 

•50 

Jacobson,  Edith 

7 

7 

7 

7 

8 

6 

.42 

Kirby,  Mary 

6y2 

6 

6 

7 

7 

6 

•35 

Lane,  Theresa 

5 

6 

6 

7 

7 

4 

•25 

McManus,  Grace 

8 

8 

8 

8 

8 

5 

.50 

9.     Complete  the  following  payroll: 


Mon 

Tues 

Wed 

Thurs 

Fri 

Sat 

Total 

At 

Amount  Due 

Anderson,  Jane 

8 

8 

8 

7% 

8K 

8 

•34 

Brenner,  Mary 

6 

8 

6 

9 

7 

8 

•  25 

Carson,  Clara 

8 

8 

8 

1% 

6 

8 

•46 

Davis,  Stella 

9 

9 

8 

9 

8 

7 

•45 

Edwards,  Emma 

6 

8 

7 

5 

6 

•54 

Frank,  Alice 

8 

8 

7 

8 

8 

4 

.28 

Grant,  Florence 

6 

8 

9 

9 

9 

2 

•75 

Harris,  Anna 

4 

7x<2 

8 

9 

•30 

Irwin.  Rose 

9 

4 

8 

cS 

•65 

James,  Grace 

8 

8 

6 

9 

9 

5 

•45 

Kane,  Bertha 

9 

4 

7 

7 

8 

.70 

Lawrence,  Laura 

5 

6 

8 

4 

9 

4 

•55 

Morris,  Alice 

4 

3 

3 

5 

7 

6 

•65 

Nelson,  Jennie 

8 

8 

2 

6 

8 

7 

•  25 

Olson,  Mary 

2 

7 

9 

3 

6 

9 

•35 

Pierson,  Carrie 

6 

4 

7M 

9 

9 

IO 

•45 

Quinn,  Frances 

9 

8 

4 

8 

7 

8 

•30 

Roberts,  Helen 

7 

7 

6 

7 

8 

•  25 

Samuels,  Edna 

4SA 

9 

9 

4 

4 

7 

.60 

Thomas,  Esther 

7 

2 

8 

9 

6 

5 

.70 

Verify  all  results  on  the  calculating  machine. 

10.     Make  out  a  deposit  slip   for  the  following  items,   listing  each 
check  separately: 

The  bank  deposit  of  The  McGill  Company  for  October  i,  1921. 
30  one-dollar  bills,  4  two-dollar  bills,  I  five-dollar  bill,  17  fifty- 
cent  pieces,  33  twenty-five-cent  pieces,  41  dimes,  67  nickels, 
125  pennies,  2  checks  on  The  Second  National,  of  Hartford, 


ioo  OFFICE   PRACTICE 

Conn.,  one  for  $25.75,  and  the  other  for  $12.25;  one  check  on 
The  Corn  Exchange  Bank  for  $26.17,  one  on  the  New  Haven, 
Conn.,  Third  National  for  $32.45,  and  one  on  The  Fidelity  Title 
&  Trust  Co.,  Stamford,  Conn.,  for  $36.78. 

11.  Find  the  total  amount  of  currency,  the  total  amount  of  silver,  the 
total  amount  of  the  checks  to  be  deposited  on  the  adding  machine. 

12.  Make  out  the  deposit  slip  on  the  typewriter,  using  carbon.     File 
the  carbon  copy. 

Trade  Acceptance 

The  Federal  Reserve  Bank  has  defined  a  trade  acceptance  as 
a  bill  of  exchange  drawn  by  the  seller  of  merchandise  on  the 
buyer  of  the  merchandise  for  the  purchase  price  of  the  goods 
and  bearing  on  the  face  of  the  acceptance  the  signed  acceptance 
of  the  buyer  with  the  date  and  the  place  of  payment  of  the  bill. 

When  a  bill  of  merchandise  is  sold  the  person  who  sells  it 
sends  a  trade  acceptance  with  the  invoice.  This  acceptance  is 

TRADE  ACCEPTANCE 

No ^  i  STAMFORD,  CpN*., 191 ....        $ , 

. .  .-.-£> . . .  after pay  to  the  order  of  OURSELVES 


in  conf  cWnity  with  ^original  ferms 


The  oblation  of  theyacceprtdjr  hereig  arises!  out  of  the  purchase  of  goods  from  the  drawer,  maturity  being 


companjUDr  bankir's  Office;  iff  the  Xlpited;!:§ates  which  he  may  designate 


purchase.    The  drawee  may  accept  this  bill  payable  at  any  bank,  trust 


To 


Due  .., 


i I-1-4- 

made  out  for  the  net  amount  of  the  merchandise,  and  also  states 
the  date  of  maturity.  The  buyer,  unless  he  wishes  to  send  a 
check,  accepts  the  trade  acceptance  by  writing  across  the  face 
the  date  of  acceptance,  place  where  it  will  be  paid  at  date  of 
maturity,  signing  his  name  and  address  and  returning  it  to  the 
person  from  whom  he  bought  the  goods. 

When  the  person  who  sold  the  goods  receives  the  acceptance 
he  may  retain  it  until  the  date  of  maturity  or  he  may  discount  it 


BANKING  AND   BUSINESS    PPuGKIJURK       101 

at  his  bank  exactly  the  same  as  he  would  if  it  were  a  promissory 
note. 

In  this  case  Clare  Conroy  sold  $45.00  worth  of  merchandise 
on  account  to  J.  C.  W.  Burch.  The  purchaser  Burch  accepted 
this  trade  acceptance  and  made  it  payable  at  the  Albany 
Commercial  Bank  on  June  21,  1918,  by  writing  across  the  face 
of  the  acceptance: 

Accepted  Payable  at 
Albany  Commercial  Bank 

June  21,  1921 
(signed)  J.  C.  W.  Burch. 

After  writing  the  above  across  the  face  of  the  trade  accept- 
ance he  returned  it  to  the  person  who  sold  him  the  goods, 
Clare  Conroy,  who  then  canceled  the  account,  and  in  place  of 
the  account  he  entered  the  $45.00  in  an  acceptances  receivable 
account. 

Before  business  houses  began  to  use  the  trade  acceptance 
they  carried  accounts  sometimes  for  very  long  terms  on  their 
books.  While  a  concern  was  carrying  an  account  of  merchan- 
dise sold  on  credit  to  another  company,  the  latter  had  the  use 
of  the  money  that  they  owed  the  company  from  whom  they 
purchased  the  goods  on  account,  while  the  latter  was  carrying 
their  account  or  name  only,  on  their  books.  This  often  caused 
some  houses  to  become  almost  bankrupt  or  to  give  up  business, 
as  they  were  often  forced  to  pay  their  accounts  within  60  days. 

Since  the  introduction  of  the  trade  acceptance  by  the  Federal 
Reserve  Banks,  companies  which  sell  merchandise  on  account 
and  receive  from  their  customers  a  trade  acceptance,  close  their 
on-account  sales  into  an  acceptance-receivable  account.  They 
have  the  privilege  of  discounting  these  trade  acceptances  after 
they  receive  them,  just  the  same  as  they  would  a  promissory 
note.  This  gives  the  company  which  sells  on  account,  a  security 
for  the  account  and  does  not  lead  to  so  many  bad-debt  accounts 
as  in  the  old  way  of  selling  merchandise. 

Concerns  using  this  trade  acceptance  plan  also  sign  them  for 


102 


OFFICE    PRACTICE 


goods  they  buy  from  others,  giving  their  creditors  trade  ac- 
ceptances. In  this  case  they  cancel  their  accounts  with  other 
concerns  with  a  trade  acceptance-payable  account  in  place  of 
simply  a  name  account  to  show  to  whom  they  are  indebted. 

i.     Bought  $75  merchandise  from  Henry  Smith  on  account. 

Sold  $50  merchandise  to  George  Jones  of  Albany,  N.  Y.,  on  account. 

George  Jones  accepted  a  trade  acceptance  for  $50,  payable 
in  10  days  at  the  Corn  Exchange  Bank,  Albany,  N.  Y.,  thus 
canceling  his  account. 

The  McGill  Company  accepted  a  trade  acceptance  for  the 
$75  from  Henry  Smith  for  merchandise  bought  from  him  on 
account,  payable  at  the  Irving  National  Bank,  New  York,  in 
15  days. 

George  Jones  paid  his  trade  acceptance  of  $50. 

The  McGill  Company  paid  trade  acceptance  for  $75  to 
Henry  Smith. 


Merchandise 


George  Jones 


Purchase 

Sales 

He  owes 

Cancels  by 

75 

on  a/c 

Tr.  Ac. 

50 

50 

50 

Henry  Smith 

Cash 

We  cancel 

We  owe 

Rec. 

Paid 

by  Tr.  Ac. 

him  on 

Jones 

Smith 

75 

a/c 

50 

75 

75 

Acceptance 

Payable 

75 

The  McGill  Co.  paid  the 
above  amount  to  Smith  and 
received  the  Trade  Ac- 
ceptance marked  PAID  as  a 
receipt. 


75 

They  gave  Smith  a  signed 
Trade  Acceptance  for  the 
merchandise  they  bought  on 
account  from  him. 


BANKING  AND   BUSINESS   PROCEDURE       103 

Acceptance  Receivable 


50 

They  received  a  signed 
Trade  Acceptance  from 
Jones  for  merchandise 
bought  on  account  from 
them. 


50 

Jones  paid  them  cash  and 
they  gave  him  his  Trade 
Acceptance  marked  PAID 
by  them  as  his  receipt. 


Whenever  a  company  sends  a  trade  acceptance  with  an  in- 
voice they  send  a  letter  of  explanation. 

Form  of  Explanation: 

"Attached  to  the  inclosed  invoice  you  will  find  a  trade  acceptance 
which  we  ask  you  please  to  sign  and  return  to  us." 

A  trade  acceptance  is  a  written  acknowledgment  of  a  pur- 
chase on  the  usual  terms  and  a  promise  to  pay  the  amount 
according  to  the  terms.  It  does  not  impose  upon  the  purchaser 
any  additional  obligation. 

The  Federal  Reserve  Bank  recognizes  this  form  of  trading 
as  the  most  economical  and  scientific  mode  of  transacting  a 
credit  business,  and  is  recommending  and  urging  its  adoption 
by  all  wholesale  houses. 

With  this  system  in  general  operation  one  can  buy  mer- 
chandise cheaper,  for  he  can,  by  this  means,  buy  goods  at  the 
lowest  cash  price  and  then  sell  them  on  a  closer  margin  of 
profit. 

Assignment: 

Make  out  trade  acceptances  for  merchandise  sold  on  ac- 
count during  the  month,  and  when  the  invoices  are  sent  to 
customers,  send  a  trade  acceptance  appended  to  each  invoice. 
Write  a  letter  stating  that  the  company  has  decided  to  accept 
from  each  of  its  customers  to  whom  it  sells  goods  on  account, 
a  trade  acceptance  payable  in  30  days.  Send  the  letter  to  the 
mimeograph  department  and  have  a  stencil  cut  and  sufficient 
copies  run  off  on  the  mimeograph. 


CHAPTER  FIVE 
SALES  AND  PURCHASES 

BUSINESS  had  its  first  inception  in  the  home.  The  customers 
of  the  tradesman  were  his  neighbors.  Business  gradually  ex- 
tended from  the  home  to  the  immediate  neighborhood  and  then 
to  the  towns  and  the  nearby  cities.  As  an  example:  a  shoe- 
maker made  shoes  for  the  members  of  his  own  family  in  his 
own  home;  later  he  made  shoes  for  the  members  of  the  families 
in  his  immediate  neighborhood.  He  had  then  begun  to  special- 
ize, he  being  the  shoemaker  for  the  neighborhood,  while  other 
neighbors  began  to  specialize  in  other  trades.  Later  he  became 
known  as  an  excellent  shoemaker  and  he  began  to  make  shoes 
for  customers  in  the  nearby  towns.  As  his  business  increased 
he  bought  his  leather  and  supplies  in  larger  quantities,  and  as 
his  customers  did  not  pay  him  in  advance  for  his  work,  he  began 
to  buy  his  leather  on  account,  thereby  having  creditors  or  per- 
sons to  whom  he  owed  money.  As  years  went  on  this  artisan 
changed  his  plan  of  operation  from  working  in  his  own  home 
as  the  demand  for  his  shoes  increased.  He  began  to  desire  a 
larger  place  in  which  to  work  and  to  obtain  other  men  to  assist 
him  in  making  shoes.  This  desire  for  larger  facilities  for  carry- 
ing on  business  led  to  the  hiring  of  a  small  store  or  shop  in 
which  he  and  his  workmen  carried  on  the  shoemaking  business. 
With  increased  business  facilities  his  customers  and  creditors 
increased.  From  the  small  store  or  shop  his  business  extended 
until  he  opened  a  small  factory  where  machinery  and  labor- 
saving  devices  were  used  in  the  making  of  shoes. 

He  now  had  ideal  conditions  for  increasing  the  output  of  his 
product.  Through  the  medium  of  advertising  which  was  made 

[  104] 


SALES  AND   PURCHASES  105 

possible  after  the  invention  of  printing,  he  placed  his  product 
before  the  inhabitants  of  cities  and  different  sections  of  his 
country.  When  he  was  making  shoes  for  the  families  in  his 
immediate  neighborhood  he  was  able  to  record  the  data  of 
the  sales  of  shoes  on  slips  of  paper  or  by  making  a  memorandum 
in  a  note  book,  or  he  might  even  have  trusted  to  his  memory. 
He  usually  paid  cash  for  his  leather  or  else  exchanged  some- 
thing of  value  with  another  neighbor,  who  gave  him  dried 
hides  or  skins. 

When  he  extended  his  business  to  include  several  workmen 
and  hired  a  small  factory  he  could  not  continue  to  mem- 
orize the  accounts  and  transactions  with  his  customers  and 
creditors  any  more  than  he  could  now  continue  to  obtain 
new  customers  to  purchase  the  output  of  his  factory.  He 
needed  assistance  both  in  keeping  his  account  records  and  in 
selling  his  product.  These  problems  led  to  the  hiring  of  clerical 
assistants  for  his  office  work,  and  to  the  development  of  a  sales 
force  to  travel  throughout  the  country  for  the  distribution  of 
his  manufactured  goods.  Transportation  systems,  steam  and 
electricity,  and  the  introduction  of  machinery  and  labor-saving 
devices  both  in  manufacturing  and  office  management  became 
necessary.  Salesmen  were  taught  the  methods  of  selling  their 
product  to  the  prospective  customers,  and  were  also  instructed 
in  the  process  of  manufacture  of  the  article  they  wished  to  sell, 
from  the  raw  material  to  the  finished  product. 

Managers  of  salesmen  and  business  executives  who  directed 
selling  campaigns  began  to  be  an  important  factor  in  these 
large  manufacturing  businesses.  Maps  of  sections  visited  by 
members  of  the  sales  force  were  used  to  check  up  the  routes 
of  the  different  members  of  the  sales  force;  comparisons  of 
sales  showed  the  efficiency  of  the  different  salesmen;  reports 
by  each  salesman  showed  the  location  of  his  customers'  stores, 
the  amount  of  business  carried  on;  and  his  business  standing 
among  other  men  in  his  community. 

Everything    connected    with    the    present    distribution    and 


106  OFFICE   PRACTICE 

selling  of  manufactured  articles  holds  the  attention  of  all  large 
business  concerns. 

Merchandise  Sales 

Salesmen's  Orders 

The  McGill  Company  has  a  number  of  salesmen  on  the  road 
obtaining  orders  for  merchandise,  which  includes  groceries, 
flour,  and  grain.  It  receives  orders  from  customers  by  mail 
and  direct  from  salesmen,  on  which  are  recorded  the  necessary 
data  for  the  files  and  records.  A  model  of  each  kind  of  order 
follows : 

Note:   See  Sale  of  Goods  Act — 1893 — in  Chapter  Ten. 

(MODEL  No.   i) 
#43  Salesman's  Order. 

Date Sept.  12,  1920. 

Salesman Henry  Bracken 

To  Whom  Sold McNulty  &  Bros.,  Frankfort,  Kentucky 

Terms On  account 

How  delivered. Via  American  Express 

Remarks 3%  Discount.     Inclosed  is  their  interest-bearing 

note,  $1000,  to  apply  on  account.  Balance  sub- 
ject to  a  Sight  Draft,  or  will  send  check  in  10 
days. 

50  bbls.  N.  S.  Flour 

30     "  Searchlight    Flour 

5  G.  Sugar 
3  Potatoes 

3  cases  Quaker  Oats 

6  half  chests   Old  Rose  Tea 

3  mats  Java  Coffee 

4  bbls.  Apples 


SALES  AND   PURCHASES  107 

(MODEL  NO.  2) 

Sales  Order  Sent  by  mail 
(Letterhead  of  Firm  on  Letter) 

Hartford,  Conn.,  Sept.  9,  1920. 
The  McGill  Company. 
Please  deliver  at  once: 

25  bbl.  #45 Potatoes 

50  boxes  #16  Cloves 

10  cases Hecker's  Oats 

5  half  chests English    Breakfast   Tea 

We  are  inclosing  our  check  #75  for  $550,  to  pay  the  balance  on  our 
bill  of  August  15.  You  may  allow  this  order  of  September  9  to  remain 
on  account.  Please  state  the  terms  of  discount  you  will  allow  us  if 
we  send  check  within  ten  days,  and  oblige 

Yours  truly, 

Frederick  Mac  Kee, 
As/Mac  K  Manager. 

Assignment: 

Take  the  10  sales  slips  sent  in  by  the  sales  force  from  the 
envelope  containing  the  commercial  papers  and  record  the 
following  facts: 

In  recording  the  amount  of  merchandise  sold,  estimate  25% 
less  than  the  current  market  price  for  each  article  sold.  Make 
up  a  price  list. 

1.  Make  out  invoices  on  the  typewriter  or  the  billing  ma- 
chine (original  and  carbon  copy)  for  the  customers. 

2.  File  the  carbon  copy  alphabetically  or  geographically. 

3.  Send  the  original  bill  to  the  bookkeeping  department  or 
outgoing  mail  department.       (Blank  invoices  are  in  the  com- 
mercial papers  envelope.) 

4.  From  all  the  orders  received  from  the  salesmen  in  to- 
day's mail,  devise  a  suitable  selling  price  list  and  enter  the  ex- 
tensions   (number   of   articles,    times    the    price    per    article). 


io8  OFFICE   PRACTICE 

Verify   these   extensions  on  the  calculating  machines.     On   a 
3"  x  5"  card,  enter  the  following  data  for  each  customer: 

Name  of  the  customer 
Address;  city,  town,  and  state 
Merchandise  sold 
Total  amount  of  the  sale 

5.  On  a  3"  x  5"  card  enter  the  following  data  for  each 
salesman: 

Name  of  salesman 

Date  of  the  sale 

Amount  of  the  merchandise  sold 

Name  of  the  customer  to  whom  this 
merchandise  was  sold 

Address  of  the  customer 

6.  File   the   first    cards    alphabetically    in    the    card    index 
drawer  marked  "Customers." 

7.  File  the  second  cards  alphabetically  after  the  guide  cards 
containing   each    salesman's   name.     Arrange   these   cards   ac- 
cording to  the  date  of  the  sale,  having  the  latest  date  card  No.  i, 
at  the  front  of  the  filing  drawer  or  cabinet. 

(MODEL) 

Customer's  Card 
Name  of  Customer 

Address  TOTAL  AMOUNT  DUE  THE  FIRM 

List  of  Merchandise  and  Selling  Price 

(MODEL) 

Salesman's  Card 

Franklin,  James — Salesman  Ziegler,  Joseph 

Nov.  2,   1920  Akron,  Ohio 

Merchandise  Sales  $50.75  (Customer) 


SALES  AND   PURCHASES  109 

Local  Map  of  Your  Town  or  City 

Using  a  local  map,  enter  the  following  data  for  the  use  of 
buyers  who  may  visit  the  main  office  and  may  desire  any 
information  as  to  transportation  or  places  of  local  interest. 

Different  colored  glass  top  pins  may  be  used. 

In  the  case  of  transportation  lines,  colored  thumb-tacks  may 
be  used,  using  a  plain  color  as  blue  for  all  local  stations,  and  a 
bright  red  thumb-tack  for  the  express  or  the  important  stations. 

Trace  the  following  on  your  local  map: 

The  different  lines  of  subway  or  surface  cars,  indicating  local  and 
express  stations. 

State  transportation  lines  passing  your  local  railroad  station. 

Indicate  the  transportation  lines  passing  the  leading  hotels.  A 
different  color  thumb-tack  could  indicate  hotels. 

Locate  points  of  interest  to  visitors  in  your  city  or  town. 

If  your  town  is  a  manufacturing  town,  indicate  the  location  of  the 
factory  or  salesroom  of  this  special  industry  by  placing  a  small  picture 
or  piece  of  the  article  manufactured,  on  the  map.  Yale  and  Towne 
Manufacturing  Company  could  be  indicated  by  placing  a  Yale  Key 
or  a  picture  of  their  burglar-proof  lock  on  the  point  of  location  of 
their  plant. 

Interborough  Map  of  the  City  of  New  York,  Borough  of 
Manhattan 

The  Interborough  Map  of  the  City  of  New  York  may  be  used 
in  an  Office  Practice  class  in  this  manner: 

Trace  the  different  lines  of  subway,  elevated,  and  surface 
cars,  using  different  colored  yarn  for  each.  State  the  station 
at  either  end  of  each  line.  State  the  important  stations  on  the 
express  line  of  the  Broadway,  Seventh  Avenue,  Lenox,  and 
Lexington  Avenue  subway  lines.  Name  the  transportation 
lines  passing  Grand  Central  Station,  Madison  Avenue  and 
42nd  Street  and  the  Pennsylvania  Station  at  Seventh  Avenue 
and  33rd  Street.  Name  the  nearest  transportation  line  and 
the  station  of  the  subway  or  the  elevated  line  at  the  Martha 


no 


OFFICE   PRACTICE 


Washington,  the  Pennsylvania,  the  Astor,  the  Belmont,  and 
the  Commodore  hotels. 

Salesmen's  Daily  Report  to  the  Home  Office  While  En  Route 

Some  companies  require  each  of  their  salesmen  while  en 
route  throughout  the  United  States  to  send  a  daily  report  to 
the  main  office,  in  order  to  give  full  credit  to  each  of  the  sales- 
men for  the  goods  sold,  in  recording  records  in  the  Bonus  De- 
partment, and  to  know  the  total  merchandise  sales. 

Reports  are  sent  on  a  form  similar  to  that  given  below: 


Date: 

Salesman: 


THE  McGILL  COMPANY 

Salesman's  Daily  Report 


nr                /""°  ** 

D           1    *.' 

o 

Sales  made  h 

y  Mr  

1  owns  or  Cities 
visited 

ropulation 

State 

Cash  Sales 

Sales  on  Account 

i  — 

2  — 

Name  of  Dealer 
visited 

Street 
Address 

Town  or  City 

Credit      standing      of 
this     dealer     in      the 
Dun     and     Bradstreet 
Business  Directories 

2  — 

3— 

Daily  Sales 

Use  the  Clerk's  Daily  Sales  Sheets  to  check  sales. 
Verify  the  work  on  the  Listing  or  Non-Listing  Machines. 
On  a  master  sheet  called  the  Sales  Sheet,  the  daily  sales  of 
several  saleswomen  have  been  listed.     The  total  sales  of  the 


SALES  AND   PURCHASES 


in 


saleswomen  for  the  week,  or  the  total  sales   for  each   day  of 
the  week,  may  be  found  from  this  sheet. 

Assignment: 

1.  Find  the  total  sales  for  each  day,  by  vertical  addition. 

2.  Find  the  total  sales  for  the  week. 

3.  Find  the  total  sales  of  each  saleswoman  for  the  week  by 
horizontal  addition. 

A  record  of  this  is  kept  by  some  houses  that  allow  a  premium 
for  all  sales  made  over  a  certain  amount  or  over  the  average 
sales  of  that  person.  They  also  keep  a  record  of  sales  by 
individual  salespeople  as  a  test  of  the  efficiency  of  the  sales 
force  of  the  company. 

Add  horizontally  and  vertically  in  order  to  verify  the  cor- 
rectness of  the  amount  of  sales  in  the  following: 

Sales  Sheet 
Daily  Sales  for  the  Week  Ended  December  10,  1921. 


Total 

Name 

Mon. 

Tues. 

Wed. 

Thurs. 

Fri. 

Sat. 

per 

Week 

Anderson,  J. 

I35-65 

87.65 

156.78 

85-46 

73.56 

I34-56 

? 

Bracken,  Mary 

4576 

198.67 

45-90 

123.78 

1356.00 

56.89 

I 

Carney,  Anna 

234.78 

78.09 

256.78 

89-45 

780.67 

355-78 

? 

Darrow,  Jennie 

89.67 

H5.78 

99-70 

45.00 

67.90 

250.68 

? 

Farrell,  Alice 

I45-50 

88.34 

190.00 

34S-78 

256.00 

78.00 

? 

Fallen,  Kate 

76.00 

95-45 

78.45 

87-34 

99-75 

I45-23 

? 

Harris,  Lilly 

234-56 

78.45 

2345.90 

16745 

780.40 

347-89 

? 

Jenkins,  Rose 

98.76 

9.60 

456.79 

89.57 

345-79 

568.90 

? 

McMahon,  Nellie 

87.56 

58.70 

87-45 

245.78 

88.80 

465.78 

? 

Richards,  Helen 

456.78 

67.90 

67-45 

567.80 

199-75 

234.00 

? 

? 

? 

? 

? 

? 

? 

? 

Note:  In  order  to  make  out  this  master  Sales  Sheet,  the  individual  sales  slips 
are  alphabetized  daily,  and  the  total  of  the  individual  sales  and  the  total 
sales  are  obtained  by  addition  on  an  adding  machine.  The  sales  of  any 
department  may  be  obtained  in  a  similar  way.  Alphabetize  the  sales 
slips  from  each  department  and  then  arrange  the  total  slips  according  to 
the  desired  department,  and  add  on  any  machine. 


ii2  OFFICE   PRACTICE 

Merchandise    Purchases 

In  the  bookkeeping  classes  all  the  merchandise  purchases 
are  entered  in  either  the  purchase  book  or  are  pasted  in  an 
invoice  book  after  they  have  been  checked  by  the  receiving 
department. 

Purchases  are  not  to  be  entered  in  the  purchase  book.  File 
all  invoices.  This  method  is  better  as  the  invoices  may 'be 
arranged  for  filing  either  alphabetically,  numerically,  or  geo- 
graphically, and  in  this  way  may  be  referred  to  quickly.  In- 
stead of  entering  invoices  in  the  purchase  book,  make  out  a 
3"  x  5"  index  card.  Keep  all  the  necessary  data  on  these  cards 
as  these  may  be  referred  to  quickly  and  the  total  purchases  found 
as  in  our  purchase  book. 

After  the  receiving  department  of  the  concern  has  checked 
and  marked  O.  K.  the  items  on  the  merchandise-purchase  in- 
voices which  have  been  received  from  the  people  to  whom  we 
owe  money  for  merchandise  which  we  have  purchased  from 
them  on  account,  we  must  verify  the  extensions  on  the  calcu- 
lating machine.  The  extensions  are  the  cost  per  article  which 
is  always  written  or  extended  into  the  money  column. 

In  order  to  verify  the  extensions  it  will  be  necessary  to  multi- 
ply the  cost  of  an  item  by  the  number  of  items  purchased,  as 
254  barrels  of  flour  at  $9.85  a  barrel,  extension  $2501.90. 

After  the  extensions  are  verified,  add  the  cost  of  each  item 
purchased,  to  find  the  total  purchases.  This  will  verify  the  mer- 
chandise-purchase account  in  the  general  ledger,  or  it  will  verify 
the  invoice  book  in  the  accounting  department. 

If  the  invoices  are  filed  alphabetically  use  the  method  for 
alphabetizing  and  then  file  them  in  the  alphabetic  file  for  in- 
voices, using  an  individual  folder  for  each  creditor. 

If  they  are  filed  numerically  consult  the  alphabetic  card 
index,  and  in  the  upper  left  hand  corner  you  will  find  the  file 
number  on  each  creditor's  card.  Enter  this  file  number  in  the 
upper  right  hand  corner  of  each  invoice  and  draw  a  circle  in 


SALES  AND   PURCHASES  113 

red  pencil  around  the  number,  making  it  easier  for  the  file  clerk 
to  file. 

If  they  are  filed  geographically,  arrange  them  according  to 
state,  city,  or  town.  The  invoices  from  each  city,  town,  or 
district  are  filed  back  of  the  guide  card  bearing  the  name  of 
the  state  in  which  the  city  or  town  is  located. 

In  filing  these  invoices  always  have  the  latest  date  toward 
the  front  of  the  folder,  as  everything  should  be  filed  with  the 
latest  date  at  the  top  for  easy  reference. 

At  the  beginning  of  business  hours  of  each  day  obtain  from 
the  bookkeeper  all  the  invoices  of  the  previous  day. 

Obtain  index  cards,  3"  x  5",  from  the  supply  department 
similar  to  the  ones  used  in  the  desk  tickler  box.  After  a  set  of 
cards  has  been  made  out  always  examine  the  cards  and  then 
make  out  new  cards  for  new  creditors,  and  make  all  future 
entries  on  the  cards  in  the  invoice  card  index.  Refer  to  the  list 
of  creditors  for  the  numbers  (for  filing).  Enter  the  necessary 
data  on  the  cards  from  all  merchandise  purchase  invoices. 

(MODEL  CARD) 

No.  45  McClurg,  A.  C.  &  Co. 

215  Wabash  Avenue 
Chicago,  111. 

Invoice  of  March  2,  1920. . .  Gross  amount  due 

Terms Less  Discount 

Due  Date Net  Amount  Due 

Paid  in  Cash  or  by  Check  on 

These  cards  may  be  filed  either  numerically  or  alphabeti- 
cally. As  illustrated,  McClurg,  A.  C.  fcf  Co.,  will  always  have 
the  numeric  file  number  of  45,  and  all  their  invoices  will  be 
filed  behind  the  numeric  guide  card  #45,  while  the  invoices  in 
the  folder  will  be  arranged  according  to  the  date  of  the  invoice, 
the  latest  at  the  front  of  the  folder. 


ii4  OFFICE   PRACTICE 

These  cards  may  also  be  placed  in  the  follow-up  file  between 
the  date  of  the  month  on  which  the  invoice  falls  due,  and  the 
date  on  which  we  wish  to  pay  it  in  order  to  receive  a  merchan- 
dise discount.  After  the  invoice  has  been  paid  it  may  be  trans- 
ferred from  these  files  to  a  transfer  drawer  or  box  for  future 
reference. 

Assignment: 

1.  Make  out  a  card  for  every  new  creditor.     Enter  the  neces- 
sary data  on  the  cards  for  the  regular  customers  from  all  invoices 
received  to-day.     (See  invoices  received  from  creditors  in  the 
envelope  containing  commercial  papers.) 

2.  File  each  card  in  the  follow-up  file.     After  they  are  paid, 
transfer  them  to  the  transfer  file,  alphabetically. 

3.  If  paid  within  10  days  make  out  a  check,  and  the  neces- 
sary data  on  the  stub  of  the  check. 

4.  Take  the  merchandise  purchases  from  the  commercial 
papers  envelope  and  file  them  alphabetically  in  your  vertical 
filing  cabinet. 

Note:  For  Bill  of  Lading,  Warehouse  Receipt  and  Freight  Bill  read  Section 
Seven  in  Office  Training  for  Stenographers,  by  Rupert  P.  SoRelle. 


CHAPTER  SIX 
THE  TELEPHONE 

THE  speaking  telephone  was  born  June  2,  1875,  in  the  attic 
rooms  of  the  Williams  Building,  106  Court  Street,  Boston, 
Massachusetts.  Alexander  Graham  Bell,  and  his  assistant, 
Thomas  Watson,  were  experimenting  and  testing  some  modifi- 
cations of  Bell's  harmonic  telegraph,  a  device  by  means  of 
which,  utilizing  the  laws  of  sympathetic  vibrations,  Dr.  Bell 
expected  to  send  six  or  eight  Morse  messages  on  a  single  wire 
at  the  same  time,  without  interference.  The  essential  parts  of 
both  transmitter  and  receiver,  of  this  telegraph,  were  an  electric 
magnet  and  a  flattened  piece  of  clock  spring.  The  spring  was 
clamped  by  one  end  to  one  pole  of  the  magnet,  and  had  its 
other  end  free  to  vibrate  over  the  other  pole.  The  transmitter 
had,  besides  this,  make-and-break  points  like  an  ordinary  vi- 
brating bell  which  when  the  current  was  on,  kept  the  spring 
vibrating  in  a  sort  of  nasal  whine,  of  a  pitch  corresponding  to 
the  pitch  of  the  spring.  When  the  signalling  key  was  closed, 
an  electrical  copy  of  that  whine  passed  through  the  wire  and 
the  distant  receiver. 

On  this  particular  day  Mr.  Watson  had  charge  of  the  trans- 
mitting ends,  and  Dr.  Bell,  in  the  other  room,  was  retuning  the 
receiver  springs  one  by  one.  What  happened  on  that  memor- 
able afternoon  is  best  described  in  Mr.  Watson's  own  words: 

"One  of  the  receiver  springs  I  was  attending  to  stopped  vibrating 
and  I  plucked  it  to  start  it  again.  It  didn't  start  and  I  kept  on  pluck- 
ing it,  when  suddenly  I  heard  a  shout  from  Bell  in  the  next  room,  and 
then  out  he  came  with  a  rush,  demanding,  'What  did  you  do  then? 
Don't  change  anything.  Let  me  see!'  I  showed  him.  It  was  very 

[us! 


n6 


THE  TELEPHONE  117 

simple.  The  make-and-break  points  of  the  transmitter  spring  I  was 
trying  to  start  had  become  welded  together,  so  that  when  I  snapped 
the  spring  the  circuit  had  remained  unbroken  while  that  strip  of 
magnetized  steel  by  its  vibration  over  the  pole  of  its  magnet,  was 
generating  that  marvelous  conception  of  Bell's — a  current  of  elec- 
tricity that  varied  in  intensity  precisely  as  the  air  was  varying  in 
density  within  hearing  distance  of  that  spring.  That  undulatory  cur- 
rent had  passed  through  the  connecting  wire  to  the  distant  receiver 
which,  fortunately,  was  a  mechanism  that  could  transform  that  cur- 
rent back  into  an  extremely  faint  echo  of  the  sound  of  the  vibrating 
spring  that  had  generated  it,  but  what  was  still  more  fortunate,  the 
right  man  had  that  mechanism  at  his  ear  during  that  fleeting  mo- 
ment, and  instantly  recognized  the  transcendent  importance  of  that 
faint  sound  thus  electrically  transmitted.  The  shout  I  heard'  and  his 
excited  rush  into  my  room  were  the  result  of  that  recognition.  The 
speaking  telephone  was  born  at  that  moment.  Bell  knew  perfectly 
well  that  the  mechanism  that  could  transmit  all  the  complex  vibra- 
tions of  one  sound  could  do  the  same  for  any  sound,  even  that  of 
speech.  That  experiment  showed  him  that  the  complex  apparatus 
he  had  thought  would  be  needed  to  accomplish  that  long-dreamed 
result  was  not  at  all  necessary,  for  here  was  an  extremely  simple 
mechanism  operating  in  a  perfectly  obvious  way,  that  could  do  it 
perfectly.  All  the  experimenting  that  followed  that  discovery  up  to 
the  time  the  telephone  was  put  into  practical  use  was  largely  a 
matter  of  working  out  the  details.  We  spent  a  few  hours  verifying  the 
discovery,  repeating  it  with  all  the  differently  tuned  springs  we  had, 
and  before  we  parted  that  night  Bell  gave  me  directions  for  making  the 
first  electric-speaking  telephone.  I  was  to  mount  a  small  drumhead 
of  gold  beater's  skin  over  one  of  the  receivers,  join  the  center  of  the 
drumhead  to  the  free  end  of  the  receiver  spring  and  arrange  a  mouth- 
piece over  the  drumhead  to  talk  into.  His  idea  was  to  force  the  steel 
spring  to  follow  the  vocal  vibrations  and  generate  a  current  of  elec- 
tricity that  would  vary  in  intensity  as  the  air  varies  in  density  during 
the  utterance  of  speech  sounds." 

Mr.  Watson  followed  these  directions,  and  the  instrument 
was  ready  for  trial  the  very  next  day.  It  was  but  few  days 
later  that  Watson  heard  the  familiar  voice  of  Dr.  Bell  come 
over  the  wires  which  were  connected  to  his  work-bench  on  the 
third  floor  of  the  Williams'  shop,  saying:  "Mr.  Watson,  please 
come  here,  I  want  you." 


n8 


OFFICE    PRACTICE 


The  introduction  of  the  telephone  into  the  business  and 
social  life  of  the  nation  was  a  difficult  task.  At  first  the  public 
was  skeptical,  but  gradually  the  more  progressive  business  men 
began  to  see  the  practicability  of  a  device  such  as  the  telephone, 


FIRST    TELEPHONE 


so  that  by  May,  1877,  the  first  telephone  switchboard  was  in- 
stalled in  the  office  of  E.  T.  Holmes,  in  Boston,  connecting  with 
five  banks.  In  the  fall  of  1877  the  first  real  telephone  exchange 
was  established  in  Bridgeport,  Connecticut,  and  New  York  City 
saw  its  first  telephone  company  organized  on  August  3ist,  1877. 
On  the  morning  of  August  5th,  1877,  the  New  York  "Sun" 
surprised  its  readers  with  the  news  that  "there  are  five  tele- 
phones in  practical  working  order  in  New  York  City."  These 
telephones  were: 


THE  TELEPHONE  119 

From  Charles  A.  Cheever's  office  in  the  Tribune  Building  to: 

1.  The  Champion  Burglar  Alarm  Company,  704  Broadway, 

2.  The  Law  Telegraph  Office,  140  Fulton  Street, 

3.  Dickerson  &  Beaman,  Lawyers,  Staatz-Zeitung  Building, 

4.  S.  J.   Burrell,  a  maker  of  telegraph  supplies,  located  on   Broad 

Street,  and 

5.  From  J.  L.  Haight's  office  at  81  John  Street  to  his  wire  plant  at 

South  Brooklyn. 

None  of  these  was  a  paid-for  line,  except  the  last. 

In  New  York  City  to-day  there  are  900,000  telephones 
operated  through  100  exchanges. 

There  are  more  telephones  in  New  York  City  than  in  any 
two  other  cities  in  the  United  States  combined. 

Instead  of  a  few  miles  of  wire,  as  there  were  in  1877,  there 
are  now  over  5,500,000  miles  of  wire  in  the  telephone  system 
in  New  York  City. 

The  employees  of  the  New  York  Telephone  Company  in  New 
York  City  total  approximately  30,000. 

The  telephone-using  public  make  over  four  and  a  quarter 
million  local  calls  daily. 

How  to  Use  the  Telephone 

The  assignment  of  answering  the  telephone  in  a  busy  office 
usually  devolves  upon  the  typist  or  the  stenographer.  To  fill 
this  position  efficiently  the  necessary  requirements  are  good 
manners,  a  quiet,  clear,  distinct  speaking  voice,  and  the  ability 
to  use  correct  English  and  pronunciation  when  talking  over  the 
telephone. 

Every  time  one  telephones  he  unconsciously  reveals  his  char- 
acter and  the  character  of  the  company  with  which  he  is  con- 
nected. First  impressions  are  often  very  lasting.  The  way  one 
answers  a  telephone  call  shows  the  other  person  what  kind  of 
service  he  may  expect  from  that  individual  or  company.  When 
at  the  telephone  you  are  your  firm;  its  reputation  is  in  your 
keeping. 

Before  making  a  call  always  consult  the  telephone  directory 


120 


THE  TELEPHONE  121 

to  make  sure  to  call  the  right  number;  if  the  number  is  not  in 
that  book  ask  for  "Information." 

Speak  clearly  and  distinctly  directly  into  the  transmitter, 
holding  your  mouth  about  one  inch  distant  from  it. 

As  a  means  of  demonstration,  use  small  toy  telephones  similar 
to  those  sold  in  the  5  and  10  cent  stores  or  any  toy  shop.  One 
student  representing  the  central  office  will  stand  at  the  rear  of 
the  room.  The  student  representing  the  office  of  The  McGill 
Company  will  stand  at  the  right-front  end  of  the  room,  and 
the  student  representing  the  office  either  calling  us  or  the  office 
we  are  calling,  will  stand  at  the  opposite  left-front  side  of  the 
room.  If  a  school  has  a  dummy  switchboard  installed  for  the  use 
of  the  students  in  the  office  practice  class,  the  switchboard 
may  represent  the  central  office  telephone  exchange.  In  this 
case  a  desk  telephone  placed  on  the  filing  cabinet  at  the  rear 
left  of  the  room  may  indicate  the  office  telephone  to  be  used  for 
the  outgoing  calls.  A  desk  telephone  placed  on  the  filing 
cabinet  at  the  rear  right  of  the  room  may  indicate  "any  office" 
outside  of  the  office-practice  classroom,  and  may  be  used  by 
the  students  who  desire  to  send  messages  to  The  McGill  Com- 
pany as  indicated  in  the  text. 

How  to  Call  a  Number  on  the  Telephone 

When  giving  a  number  to  the  operator  state  (i)  the  name 
of  the  central  office  wanted;  (2)  each  figure  of  the  telephone 
number;  (3)  the  party-line  letter,  if  there  is  one.  Numbers 
which  are  even  hundreds  or  even  thousands  should  be  given 
as  such  instead  of  each  figure  being  given  separately. 

SAMPLES: 

CAN  al        0027  "Canal  oh-oh  (pause)  two-seven." 

JOH  n         1253  "John  one-two  (pause)  five-three." 

MAI  n         2125-}  "Main  two-one  (pause)  two  five — Party  J" 

BRO  ad       4800  'Broad  four-eight-hundred" 

WOR  th      5000  "Worth  five-thousand" 


122  OFFICE  PRACTICE 

Mr.  Harris  asks  his  stenographer  to  call  Mr.  Stewart  to 
the  telephone. 

Let  us  assume  that  Miss  Green  is  Mr.  Harris'  stenographer, 
and  that  Miss  Blank  is  the  stenographer  for  Mr.  Stewart. 

Miss  Green  upon  ascertaining  Mr.  Stewart's  correct  tele- 
phone number  lifts  the  receiver  from  the  hook.  Instantly  an 
electric  current  passes  over  the  wires  to  the  central  office,  and 
causes  a  light  to  glow  on  the  switchboard  in  front  of  the  operator. 
That  light  notifies  " central"  that  a  call  is  desired  on  that 
particular  line.  Accordingly  she  sets  up  her  connection  and 
says,  "Number,  please?"  (using  the  rising  inflection). 

Miss  Green:     "Lenox  5748  (making  a  slight  pause  between  57  and  48). 

Operator  at  the  central  office:     "Lenox  57  (pause)  38". 

Evidently  Miss  Green  did  not  speak  distinctly  as  central    mis- 
understood the  number. 

Miss  Green:     "No,  operator,  Lenox  57  (pause)  48." 

Operator  at  ihe  central  office:  "Beg  your  pardon,  57  (pause)  48" 
confirming  the  call  which  central  always  does  in  making  a  tele- 
phone connection  on  an  incoming  call). 

Miss  Green:  "Yes  (or  right)  please."  Thus  central  establishes  the 
telephone  connection  with  the  telephone  exchange  in  which  Mr. 
Stewart's  telephone  is  listed,  the  Lenox  Exchange. 

While  you  are  waiting  for  the  called  number  to  answer, 
the  intermittent  burr-r-ring  sound  of  the  ringing  signal  will 
indicate  that  the  work  of  putting  up  the  connection  has  been 
performed  by  the  operators  concerned. 

The  switchboard  operator  of  the  company  in  which  Mr. 
Stewart's  office  is  located  receives  the  signal  of  an  incoming 
call  and  connects  the  telephone  in  his  office  with  the  Lenox 
Exchange. 

Miss  Blank:     "Stewart  &  Co.,  Miss  Blank  speaking." 
Miss  Green:     "This   is   Harris   &   Co.,   Miss   Green   speaking.     Mr. 

Harris  would  like  to  speak  with  Mr.  Stewart,  please." 
Miss  Blank:     "Just  a  minute,  please."     (Miss  Blank  then  tells  Mr. 
Stewart  that  Mr.  Harris  wishes  to  speak  to  him  over  the  telephone.) 


123 


i24  OFFICE   PRACTICE 

Voice  of  Mr.  Stewart  over  the  telephone:     "Mr.  Stewart  speaking." 
Miss  Green:     "Just  a  minute,  please."     (Miss  Green  tells  Mr.  Harris 

that  Mr.  Stewart  is  ready  to  speak  with  him  over  the  telephone.) 
Voice    of  Mr.    Harris    over    the   telephone:      "Mr.    Harris    speaking." 

Conversation  between  Mr.  Stewart  and  Mr.  Harris  continues. 

Call  completed. 

Mr.  Harris  and  Mr.  Stewart  both  hang  up  their  receivers  on 
their  respective  telephones.  If  a  switchboard  is  used,  the  opera- 
tor in  each  of  the  above  concerns  notices  from  a  signal  on  her 
switchboard  that  both  parties  have  completed  their  conversa- 
tion. The  switchboard  operator  then  disconnects  with  the 
central  telephone  exchange  thereby  notifying  "central"  that 
the  party  who  called  Lenox  5748  has  completed  his  conversation. 
Where  no  switchboard  is  used,  "central"  receives  the  same 
signal  when  the  receiver  is  replaced  on  the  hook. 

Note:  The  best  business  practice  is  to  name  individuals  using  the  telephone 
instead  of  "stenographer,"  "bookkeeper,"  "secretary,"  etc. 

Important  Points  Concerning  the  General  Telephone 
Directory,  the  Classified  and  the 
Suburban  Directory 

1.  All  names  are  arranged  thus: 

Surname,  first  name,  initials,  business  address,  the  telephone 
exchange  and  telephone  number.  For  example:  O'Mara, 
John  A.  &  Co.,  Advertising  Agency,  225-51!!  av,  MAD  Sq.- 
9850. 

2.  In  the  case  of  a  residence  telephone  the  directory  indicates 
this  information   by  inserting  a  small   "r"   between  the 
name  and  address. 

3.  The  titles  Mr.  Miss,  Mrs.  and  Dr.  are  printed  after  the 
surname.     For  example,  Harrison,  John,  Dr. 

4.  All  city  departments  are  listed  under  the  title  "City  of 
New  York."       For   example,  Mayor,    Office    City    Hall, 
Cortland-iooo. 


THE  TELEPHONE  125 

5.  Apartment  houses  are  listed   under  name  of  Apartment 
House,   or  where   they   have   no   name   are   listed   under 
"Number."     This  is  convenient  because  if  one  knows  the 
Number  of  an   apartment  house,   it  is  easy  to  find  the 
telephone  number  listed  under  "Number."    For  example, 
611   West   I4ist  Street  is  listed  under  "Number"  and  is 
AUD  ubon-648o. 

6.  All   public   schools   in   New  York   City   are   listed   under 
"Education,  Board  of."    For  example,  Julia  Richman  High 
School  60  W  13,  CHE  lsea-4478.     The  different  annexes 
of   this   school   are   listed   under  the   name  of  the   Main 
Building.        For    example,   Annex    PS    9    225    W    82    St, 
SCH  uyler-8437. 

7.  Branches  of  businesses  are  listed  in  the  same  manner. 

8.  Hospitals  are  listed  under  "Hospitals"  and  in  addition  may 
be  found  under  the  name  of  the  particular  hospital,  as 
St.  Vincent's  Hosp.,  7th  av  &  n,  CHEL  863-4050. 

9.  Names  beginning  with  "Mac,"  "Me.,"  "O"  and  "Saint 
(St.)"  are  listed  in  strict  alphabetical  order. 

10.  The  Telephone  Company  issues  two  kinds  of  directories 
New  York  City  and  Suburban.  A  Classified  Telephone 
Directory  is  also  issued,  but  this  directory  is  published 
by  the  Reuben  H.  Donnelly  Corporation  with  the  author- 
ity and  cooperation  of  the  New  York  Telephone  Company. 

1.  The  New  York  City  Directory  contains: 

A.  (i)  Advertisers  listed  before  the  names  of  subscribers. 
(2)  General  information  about  the  use  of  Long  Dis- 
tance Tolls. 

B.  An  alphabetical  list  of  telephone  subscribers,  busi- 
nesses, addresses,  and  telephone  numbers. 

2.  The  Suburban  Directory  contains  lists  of  subscribers  in 
near-by  towns,   alphabetically  arranged   for  each  par- 
ticular locality  in  the  same  manner  as  applied  in  the 
City  Telephone  Directory. 


126  OFFICE   PRACTICE 

3.  The  Classified  Directory  contains  an  alphabetical  list 
of  all  classes  of  business  subscribers  in  the  city  and  a 
list  of  companies,  with  the  businesses,  address,  and  the 
telephone  number. 

Local  calls  are  charged  at  the  rate  of  five  cents,  and  the 
speaking  period  is  assumed  to  cover  a  conversation  of  five  min- 
utes' duration.  In  cases  where  long  conversation  are  continu- 
ally held  over  any  one  particular  line,  the  Company  reserves 
the  right  to  charge  overtime  on  such  calls. 

Suburban  calls  are  charged  on  the  basis  of  five  minutes  with 
an  additional  charge  for  overtime. 

Long  distance  calls  have  a  minimum  charge  of  three  minutes 
and  an  additional  charge  for  each  minute  thereafter. 

To  facilitate  sending  telegrams  and  cablegrams,  telephone 
users  should  call  by  name  for  the  Western  Union  Telegraph 
Company  or  the  Postal  Telegraph  Cable  Company. 

The  Telephone  Company  issues  new  directories  every  Febru- 
ary, May  and  October.  The  old  directories  are  taken  up  by  the 
Company  at  the  time  of  the  delivery  of  the  new  books. 

An  emergency  call  may  be  made  as  follows:  Call  the  central 
office  and  say: 

"I  want  to  report  a  fire." 
"I  want  a  policeman." 
"I  want  an  ambulance." 

If  compelled  to  leave  the  telephone  before  central  or  the 
station  answers,  tell  the  operator  where  help  is  required.  No 
charge  is  made  for  such  calls. 

Special  Information  Concerning  the  Use   of  the   New  York 
City  Telephone  Directory 

You  will  immediately  notice  two  striking  changes  in  the 
style  of  printing  the  listings  in  this  book. 

The  first  three  letters  of  all  central  office  designations  (except 
those  in  Staten  Island)  have  been  capitalized  in  black  Gothic 


THE  TELEPHONE  127 

type  and  separated  from  the  rest  of  the  name  by  a  small  space. 
Example,  Wadsworth  is  printed  WAD  sworth. 

All  the  line  numbers  which  were  below  1000  in  the  last  direc- 
tory have  been  changed  by  prefixing  enough  zeros  to  build  each 
number  up  to  four  digits.  Example,  Melrose  19  is  printed 
MEL  rose-ooi9;  Prospect  178  is  printed  PRO  spect-oi78. 

These  changes  were  necessary  in  preparation  for  the  intro- 
duction of  machine  switching  central  office  apparatus  in  New 
York  City.  In  the  near  future  subscribers  in  certain  exchange 
areas  may  be  provided  with  instruments  equipped  with  dials 
for  use  in  making  local  calls  by  the  machine  switching  method. 
These  subscribers  will  be  able  to  make  all  local  telephone  calls 
without  the  aid  of  an  operator.  They  will  dial  the  first  three 
letters  of  the  central  office  name  and  a  number  with  at  least 
four  numerals.  It  is  for  the  benefit  of  the  subscribers  who  will 
use  the  new  equipment  that  the  style  of  printing  the  Telephone 
Directory  has  been  changed. 

The  three  letters  which  must  be  dialed  are  made  to  stand  out 
clearly  from  the  rest  of  the  central  office  name  so  that  it  will  be 
easy  to  determine  just  what  letters  to  dial. 

In  calling  with  the  new  machine  switching  apparatus,  the 
subscriber  will  dial  the  first  three  letters  of  the  called  central 
office  name  and  the  number  which  must  consist  of  at  least  four 
numerals.  That  is  why  all  line  numbers  which  were  composed 
of  less  than  four  digits  (numbers  below  1000)  had  to  be  built  up 
,to  four  digits  by  prefixing  the  initial  zeros. 

As  long  as  you  continue  to  be  served  with  the  manual  type 
of  instrument  such  as  you  now  have,  you  should  pay  no  atten- 
tion to  the  new  style  of  printing  central  office  names  in  the 
Telephone  Directory.  For  example,  the  fact  that  Wadsworth 
is  printed  WAD  sworth  makes  no  difference  in  the  pronuncia- 
tion of  the  word.  In  giving  numbers  to  the  operator  you  should 
continue  to  pronounce  central  office  names  in  full  as  you  do 
now. 

Zeros  that  have  been  added  to  line  numbers  formerly  con- 


128  OFFICE    PRACTICE 

taming  less  than  four  digits  must  be  given  as  part  of  the  new 
numbers  but  not  as  "zero."  As  heretofore,  zeros  will  be  pro- 
nounced "oh."  If  you  wish  to  call  WAD  sworth  0078,  for 
example,  you  will  say  "Wadsworth  oh-oh  (pause)  seven- 
eight." 

If  your  telephone  number  has  been  changed  by  the  introduc- 
tion of  one  or  more  initial  zeros  be  sure  to  include  the  zeros  as 
part  of  your  number  when  giving  it  to  an  operator  or  to  any 
other  person. 

Subscribers  who  will  be  served  by  the  machine  switching 
system  will  be  given  individual  instructions  in  the  use  of  the 
equipment  before  the  new  system  is  placed  in  service. 

Assignment  on  the  Use  of  the  Telephone,  and  Looking  Up 
Telephone  Numbers  in  the  Telephone  Directory: 

1.  Call  the  National  Bank  Safe  Deposit  Company  of  your 
city  and  arrange  for  renting  a  safe  deposit  box  for  The 
McGill  Company. 

Note:  Numbers  containing  three  ciphers  are  read  as  thousands. 
For  example:  Murray  Hill-8ooo — eight  thousand;  Murray  Hill-5ioo 
— five-one  hundred. 

2.  I  want  to  telephone  to  Mrs.   Harris  who  lives  in  the 
apartment  house  at  611  West  I4ist  Street.     I  have  for- 
gotten the  number  of  her  telephone.    Where  shall  I  look 
in  the  general  telephone  directory  to  find  it? 

3.  The  telephone  number  of  the  Underwood  Typewriter 
Company,  repair  department,  is  Barclay-89OO.    Explain 
how  to  call  this    number  and  ask  that  a  repair  man  be 
sent  to  The  McGill  Company  to  repair  the  Underwood 
typewriters  in  Room  509. 

4.  Look  up  the  telephone  number  of  the  Julia  Richman  High 
School. 

5.  An  accident  has  just  occurred  across  the  street.     Sena 
in  an  emergency  call  to  the  nearest   telephone  exchange. 


THE  TELEPHONE  129 

6.  Send  out  circular  letters  to  retail   dealers  who  are  inter- 
ested in  flour,  grain,  and  fruit.      How  will  the  telephone 
directory  assist  you  in  compiling  the  mailing  list? 

7.  Call  the  leading  advertising  agent  of  your  city  and  tell 
the  manager  that  The  McGill  Company  wishes  to  arrange 
for  advertising  in  the  middle-west  newspapers. 

8.  Call   the   National    Biscuit   Company,   General  Offices, 
Sales  Agency.    Tell  the  manager  we  desire  an  interview 
with  one  of  their  salesmen. 

9.  Get  the  information   bureau  at  your  local  railroad  on 
the  telephone.    Ask  when  the  express  for  Chicago  leaves 
and  reserve  a  Pullman  seat  for  Mr.  Smith. 

10.  I  left  an  umbrella  on  the  8.15  express  from  New  Haven, 
Conn.,  Saturday  morning.  Call  the  lost  article  depart- 
ment at  the  local  railroad  station  and  make  inquiry 
about  a  black  silk  umbrella. 

n.  The  School  Magazine  is  to  be  issued  on  Wednesday. 
Telephone  to  the  publishers  and  ask  for  the  manager  of 
the  printing  department,  stating  that  we  wish  200 
copies  sent  to  the  school. 

12.  Make    out    a    memorandum    of   the    names,    business 
addresses,  and  the  telephone  numbers  often  men  in  your 
city  who  are  in  the  following  businesses: 

Advertising,  Grocers,  Fruit  Dealers,  Plumbers,  Accountants, 
Architects,  Attorneys,  Bankers,  Detective  Agents,  Managers 
of  Hotels,  Dealers  in  Automobile  Accessories  and  Supplies, 
Chemists,  and  Dealers  in  Electrical  Supplies.  (Use  the 
Classified  Directory.) 

13.  Call  the  Mayor  of  your  city  on  the  telephone  and  invite 
him  to  make  an  address  at  the  assembly  in  your  school 
on  a  patriotic  subject. 

14.  Telephone  to  the  office  of  the  Superintendent  of  Schools 
and  ask  why  the  textbooks  ordered  last  month  have  not 
been  delivered  at  your  school 

15.  Call  the  President  of  the  Board  of  Health  on  the  tele- 


1 30  OFFICE   PRACTICE 

phone.     Invite  him   to   address  the   assembly  in  your 
school  on  the  subject  of  Hygiene. 

16.  Make  a  memorandum  of  the  telephone  number  and  the 
address  of  the  manager  of  your  local  theater,  five  mem- 
bers of  the  local  fire  department,  ten  members  of  the 
local  police  department,  and  four  well-known  doctors 
and  five  lawyers. 

17.  We  received  word  from  one  of  our  creditors  that  mer- 
chandise ordered  from  them  had  been  shipped  to  us  by 
parcel  post.    Call  the  local  postmaster  on  the  telephone 
and  make  inquiry,  as  we  have  not  received  the  merchan- 
dise. 

1 8.  Get  the  manager  of  the  local  Victor  Talking  Machine 
Company  firm  on  the  telephone.   We  want  a  repair  man 
to  examine  the  mechanism  of  our  school  Victrola. 

19.  Telephone  the  editor  of  your  local  newspaper  and  ask 
him  to  send  a  man  to  report  the  debate  which  is  to  be 
held  at  the  school  on  Friday  evening  between  the  Senior 
and  Junior  Debating  Societies. 

20.  Call  the  leading  grocer  of  your  city,  ask  for  the  manager. 
Make  an   appointment  with  him   for  our  salesman  to 
call  at  3  P.M.,  or  at  any  hour  that  is  convenient  to  the 
manager.    Make  a  note  on  a  small  sheet  of  paper  of  the 
hour  of  the  appointment,  and  place  the  memorandum 
on  the  desk  of  the  chief  clerk. 

21.  Get  the  Western  Union  Telegraph  on  the  telephone  and 
ask  them  to  send  a  messenger  to  your  school. 

22.  Look  up  the  telephone  number  of  the  tax  collector.  Make 
an  appointment  for  him  to  call  me  up  as  I  wish  to  speak 
with  him  in  reference  to  my  tax  bill. 

23.  Call   the   bureau   of  information   at   the  local   railroad 
station,  and  find  out  if  the  8.10  express  has  a  through 
sleeper  to  Boston,  Massachusetts. 

24.  Telephone  the  local  railroad  station  and  inquire  when 
the  next  express  leaves  for  Washington,  D.  C.     Have  a 


THE  TELEPHONE  131 

lower  berth  reserved  for  our  salesman.  Find  out  the 
time  of  the  arrival  of  the  express  at  Washington;  get 
the  number  of  the  car  and  make  a  note  of  the  information 
and  place  it  on  the  desk  of  the  chief  clerk. 

25.  Telephone  the  American  Express  Company  to  call  imme- 
diately for  a  package  which  you  wish  to  send  to  Chicago. 

26.  Ask  the  local   printing  office  to  quote  prices  on  2000 
letterheads  printed  on  Bond  paper,  size  8j^"xii",  for 
immediate  delivery. 

27.  We  are  anxious  to  know  if  the  site  we  are  considering  for 
our  factory  has  a  clear  title.    We  shall  place  the  searching 
of  this  title  in  the  hands  of  the  best  law  firm  in  your 
city.     Telephone  one  of  the  members  of  a  well-known 
legal  firm  and  make  inquiry  concerning  the  subject  in 
question. 

28.  We  shipped  a  package  of  merchandise  to  Mr.  Martin 
O'Connell  at  Chicago  by  the  American  Express  Com- 
pany.   There  has  been  a  delay  in  the  delivery.    Call  the 
express  office  and  make  inquiry.    Make  a  memorandum 
of  the  result  of  your  conversation  with  the  express  com- 
pany and  place  it  on  the  desk  of  the  chief  clerk. 

29.  We  have  reserved  a  room  in  the  Hotel  Dennis  for  one  of 
our   salesmen   who   was   obliged    to    change   his    plans. 
Telephone  the  hotel  at  Atlantic  City  and  cancel  this 
reservation. 

30.  Miss  A.,  one  of  our  stenographers,  had  a  book  reserved 
at  the  Public  Library.     She  received   a  notice  stating 
the   reservation   will   expire   at   5    P.M.     Telephone   the 
Library  and  ask  the  Librarian  to  reserve  the  book  until 
5.30,  when  Miss  A.  will  call  for  it. 

Reference  Books 

Different  business  houses  require  different  varieties  of  books 
of  reference.  Law  firms  generally  have  a  large  library  of  law 
books,  while  nearly  all  companies  have  directories  and  general 


132  OFFICE   PRACTICE 

reference  books.  If  the  stenographer  desires  to  find  the  meaning 
of  a  word,  the  correct  spelling,  or  the  division  of  a  word  into 
syllables,  he  consults  a  dictionary.  A  buyer  would  likewise 
consult  a  classified  directory  or  buyer's  guide,  as  all  business 
houses  are  listed  under  a  heading  describing  their  specialty.  A 
large  mail  order  house  will  have  directories  of  cities  and  towns 
in  the  different  sections  of  the  United  States  as  they  give  an 
alphabetic  list  of  every  resident,  a  map  of  the  town,  and  a  list 
of  the  officials.  This  data  may  be  used  in  making  up  a  mailing 
list.  Social  directories  contain  lists  of  prominent  people,  clubs, 
theater  diagrams,  and  other  miscellaneous  information.  Busi- 
ness magazines,  credit  rating  books,  almanacs,  year  books, 
postal  and  shipping  guides  and  telephone  directories  are  in 
general  use  in  business.  Detailed  explanation  of  the  telephone 
directory  may  be  found  in  the  chapter  on  the  telephone. 

Credit  rating  data  is  furnished  in  book  form  by  the  Bradstreet 
Company  and  by  R.  G.  Dun  &  Company  to  merchants  who 
subscribe  yearly  for  the  service.  The  subscription  also  includes 
special  reports  on  credit  rating.  The  report  is  in  code  and 
states  the  investment,  the  estimated  worth,  the  prospects  of 
success  in  business,  and  whether  the  individual  or  company  is 
slow  or  prompt  in  meeting  obligations.  The  special  reports 
contain  reports  from  the  bank  in  which  a  merchant  is  a  depositor. 
These  credit  rating  companies  have  an  agent  in  each  town  or 
city  who  furnishes  the  necessary  data  for  these  reports.  Alma- 
nacs and  atlases  usually  contain  a  set  of  maps  indexed  by 
states,  beside  other  valuable  commercial  information.  In  fact, 
all  reference  books  do  for  the  business  man  what  a  map  does 
for  the  traveler. 

Previous  to  the  publication  of  maps  of  the  United  States, 
the  geographic  knowledge  of  our  country  was  taught  by  the  old 
Indian  warriors  to  the  young  men  and  the  little  Indian  children 
by  word-of-mouth,  as  the  oldest  and  the  most  learned  warriors 
knew  the  deer  paths  and  the  places  where  it  was  safe  to  cross 
dangerous  streams  within  a  few  miles  of  the  hunting  grounds. 


THE  TELEPHONE  133 

Maps  have  replaced  this  system  of  geographic  memory,  and 
today  almanacs  and  atlases  contain  much  encyclopaedic  infor- 
mation. Business  men  today  need  a  source  of  ready  reference 
more  than  the  old  Indian  warrior  needed  the  knowledge  he 
possessed  of  a  safe  path  through  his  hunting  grounds.  The 
important  point  today  is  not  to  have  the  desired  information 
retained  accurately  in  one's  memory,  but  to  know  where  to 
find  the  knowledge  which  one  requires. 

Who's  Who  in  America 

Among  the  books  of  general  information  used  for  reference  in 
the  business  world  are  the  well-known  Who's  Who  in  America 
and  Who's  Who  in  England.  These  books  give  a  brief  personal 
biography  of  living  notable  men  and  women  in  America  and 
Great  Britain.  The  data  generally  consists  of  the  date  of  birth, 
parents,  education,  public  or  prominent  positions  held,  occupa- 
tion or  profession,  and,  in  the  case  of  writers,  a  list  of  the  titles 
of  books  published. 

Assignment: 

The  assistant  manager  wishes  to  obtain  the  following  infor- 
mation: Consult  Who's  Who  in  America — 

Theodore  Roosevelt: 
Where  was  he  born  ? 

Where  was  the  school  of  his  childhood  located  ? 
What  are  the  titles  of  some  of  the  books  he  wrote? 
When  was  he  made  Commissioner  of  Police  in  the  City  of  New  York? 
On  what  date  did  he  become  President  of  the  United  States? 

Note:  This  information  will  be  found  in  the  1918-1919  edition  of  Who's  Who 
— not  in  the  later  editions. 

Woodrow  Wilson: 

When  was  he  elected  President  of  the  United  States  for  the  first  time? 
For  the  second  time  ? 

State  the  date  of  his  election  as  Governor  of  New  Jersey. 

When  was  he  installed  as  President  of  Princeton  University? 

State  any  interesting  events  which  took  place  during  his  administra- 
tion as  President  of  the  United  States. 


134  OFFICE   PRACTICE 

Warren  G.  Harding: 

What  public  office  did  he  hold  before  his  nomination  for  President? 
When  was  he  elected  President  of  the  United  States? 
State  any  interesting  facts  which  have  taken  place  during  his  admin- 
istration. 

Look  up  the  name  ot  your  favorite  living  American  author 
and  find  his 

Age 

Place  of  residence 

Two  interesting  facts  about  his  life 

Name  some  books  that  he  wrote 

Make  a  memorandum  of  four  important  facts  about  each  of 
the  following  business  men: 

John  D.  Rockefeller  Charles  Schwab 

Rodman  L.  Wanamaker  Charles  W.  Eliot 

Nathan  Straus  Lotus  D.  Coffman 

Thomas  William  Churchill  Charles  McMurry 

William  L.  Ettinger  Richard   Burton 

Henry  Ford  Brander  Matthews 

William  H.  Taft  William   Lyon    Phelps 

Calvin  Coolidge  K.  M.  Landis 
Franklin  D.  Roosevelt 

City  or  Town  Directory 

Every  city  and  some  towns  publish  a  city  or  town  directory 
which  contains  the  names  of  the  citizens  alphabetically  arranged, 
a  street  guide,  a  classified  business  directory,  a  map  of  the 
municipality,  and  a  list  of  the  officials,  churches,  schools,  socie- 
ties and  corporations. 

The  street  guide  has  the  streets  alphabetically  listed,  the  resi- 
dences and  the  places  of  business  are  designated  by  their 
street  numbers  and  arranged  numerically,  a  star  opposite  a 
name  usually  denoting  parties  having  telephones. 

The  city  officials  usually  are:  mayor,  board  of  aldermen, 
treasurer,  corporation  counsel,  collector  of  taxes,  city  engineer, 


THE  TELEPHONE  135 

health  officer,  milk  and  food  inspector,  building  inspector,  chief 
of  police,  and  chief  of  the  fire  department. 

Donnelly's  Red  Book,  or  the  National  Buyers'  Guide  and 
Sales  Catalogue,  is  published  in  the  states  of  California,  Con- 
necticut, Georgia,  Illinois,  Massachusetts,  Michigan,  Minne- 
sota, Missouri,  New  York,  Ohio,  Pennsylvania,  and  Wisconsin. 
The  geographical  section  lists  companies  geographically,  by 
state,  town,  or  city,  and  alphabetically  by  material,  products, 
and  services.  If  one  living  near  Detroit  wishes  to  communicate 
with  an  Addressing  Machine  Manufacturing  concern  in  order 
to  install  a  mechanical  mailing  device,  he  will  first  find  the  classi- 
fication MICHIGAN  in  large  black  type;  under  Michigan  he 
will  find  DETROIT  alphabetically  arranged;  and  then  alpha- 
betically he  will  find  Machines.  Addressing  Mfgs.  Beneath 
this  he  will  find  the  names,  addresses,  and  the  telephone  num- 
bers of  all  houses  manufacturing  addressing  machines. 

Assignment: 

Using  your  city  or  town  directory,  find  the  following: 

1.  The  name  of  the  mayor  of  your  city;    locate  his  office  and  his 
residence. 

2.  The  name  of  the  city  treasurer  and  of  the  comptroller. 

3.  Locate  the  board  of  education's  office. 

4.  Find  the  name  and  the  address  of  the  city  superintendent  of 
schools. 

5.  Find  the  name  and  the  address  of  the  principal  of  your  high 
school. 

6.  Locate  the  address  of  the  office  of  the  board  of  health. 

7.  Find  the  name   and   the   address  of  the   health  officer  of  your 
city. 

8.  Find  the  names  and  locate  the  offices  and  the  residences  of  the 
members  of  the  medical  staff  of  your  city  hospital. 

9.  Look  up  the  name  and  the  residences  of  ten  nurses  in  your  city. 

10.  Locate  the  principal  fire  department  of  your  city. 

11.  Name  the  chief  of  each  fire  company,  stating  his  residence  and 
his  office. 

12.  Look  up  the  following  names  in  your  city  directory.    Make  a  list 
of  the  names,  the  address,  and  the  position  of  each  person: 


136  OFFICE   PRACTICE 

a  The  chief  customs  official. 

b  The  manager  of  your  local  theater. 

c  Ten  members  of  the  local  police  force. 

d  Ten  members  of  the  local  fire  department. 

e  Ten  members  of  the  common  council  or  the  law-making 

body  of  your  city. 

f  The  postmaster  and  the  assistant  postmaster, 

g  The  letter  carriers  in  your  neighborhood, 

h  The  tax  collector  of  your  city. 

i  The  members  of  the  board  of  assessors  or  the  men  who 

levy  the  tax  rate  in  your  city, 

j  Twenty-five  teachers  in  your  school, 

k  Ten  lawyers,  dry  goods  merchants,  druggists,  butchers, 

manufacturers,  phonograph  dealers,  and  grocers. 

1  The  editor  of  your  local  newspaper  and  the  reporters, 

m  The  librarian  of  the  local  library  and  her  assistants, 

n  The  manager  of  the  telephone  exchange, 

o  The  manager  of  the  telegraph  office.  " 

p  The  ticket  agent  at  your  local  railroad  station, 

q  The  leading  real  estate  agents  of  your  city. 


CHAPTER  SEVEN 
THE  TYPEWRITER 

The  business  world  today  owes  much  of  its  efficiency  to  the 
invention  of  the  typewriter.  But  for  its  invention  business 
letters  would  still  be  written  in  longhand  by  expert  penmen; 
carbon  copies  of  outgoing  mail  could  not  be  filed  for  future 
reference;  bookkeeping  machines  would  be  unknown,  as  they 
use  the  keyboard  of  the  modern  typewriter;  and  the  adding 
and  calculating  machines  with  a  typewriter  keyboard  would  be 
impossible.  All  these  owe  their  existence  to  "The  Father  of  the 
Typewriter,"  Christopher  Lathan  Sholes,  who  was  born  in  1819 
and  died  in  1890,  but  had  lived  to  see  his  invention  used  in 
practically  every  office  throughout  the  world,  and  the  old- 
fashioned  pen,  ink,  and  paper  method  beeome  a  thing  of  the 
past  in  modern  business  correspondence.  To  his  patience  in 
perfecting  the  mechanism  of  the  first  typewriter  is  due  in  a  large 
measure  the  efficiency  of  every  business  office  today. 

The  letters  above  the  key  on  the-  keyboard  indicate  which 
hand  is  to  be  used  to  operate  these  keys.  R  indicating  the  right 
hand,  L  the  left  hand,  the  figures  I,  2,  3,  4,  which  finger  is  to  be 
used  to  strike  the  key.  The  figure  i  under  R  means  that  the 
keys  u,  j,  m,  and  y,  h,  n  are  to  be  operated  with  the  first  finger 
of  the  right  hand,  and  the  figure  I  under  L  means  that  the  keys 
r,  f,  v,  and  t,  g,  b  are  to  be  operated  with  the  first  finger  of  the 
left  hand.  The  figure  2  under  R  means  that  the  keys  i,  k,  comma, 
are  to  be  operated  with  the  second  finger  of  the  right  hand.  The 
figure  2  under  L  means  that  the  keys  e,  d,  c,  are  to  be  operated 
with  the  second  finger  of  the  left  hand.  The  figure  3  under  R 

[137] 


138 


OFFICE   PRACTICE 


means  that  the  keys  o,  1,  period,  are  to  be  operated  with  the 
third  ringer  of  the  right  hand.  The  figure  3  under  L  means 
that  the  keys  w,  s,  and  x  are  to  be  operated  with  the  third  finger 
of  the  left  hand.  The  figure  4  under  R  means  that  the  keys 
p,  :,  /,  are  to  be  operated  with  the  fourth  finger  of  the  right 

L          •  R 


SPACEBAR. 


hand.  The  figure  4  under  L  means  that  the  keys  q,  a,  z,  are  to 
be  operated  with  the  fourth  finger  of  the  left  hand.  To  capitalize 
any  letter  of  the  alphabet  or  to  write  the  characters  ",  #,  $,  %, 
— ,  &,  ',  (,  ),  *  the  shift  key  must  be  depressed,  and  held  down 
while  the  proper  key  is  operated.  The  left  shift  key  should  be 
used  to  operate  any  key  on  the  right  side  of  the  keyboard 
while  the  right  shift  key  should  be  used  to  operate  any  key  on 
the  left  side  of  the  keyboard. 

Note:    The  Typewriter  companies  issue  a  hook  of  instructions  in  which  all 
parts  of  the  machine  are  fully  explained  and  illustrated. 

The  following  directions  are  taken  from  RATIONAL  TYPE- 
fTRITING— Medal  of  Honor  Edition— by  Rupert  P.  SoRelle: 

Position  at  Machine 

Assume    a    comfortable    position    directly    in    front    of   the 
machine.    Adjust  your  chair  so  that  when  you  are  seated  your 


POSITION    AT   THE    MACHINE 


140  OFFICE    PRACTICE 

arms  hang  naturally  at  your  side.  The  seat  should  be  lowered  so 
that  the  elbows  are  on  a  level  with  the  top  of  the  table,  and 
the  forearms  parallel  with  the  slant  of  the  keyboard.  Sit  erect 
and  place  your  feet  squarely  on  the  floor.  Do  not  "slouch" 
down  over  the  keyboard.  Any  movement  of  the  body  backward 
or  forward  should  be  made  by  using  the  hips  as  a  hinge.  The 
position  at  the  machine  is  of  the  utmost  importance. 

Place  the  hands  over  the  keyboard  with  the  little  (fourth) 
fingers  very  lightly  on  the  keys  "  ;"  and  "a."  The  fourth  fingers 
should  be  kept  hovering  over  these  keys  all  the  time  when  not 
striking  other  letters,  and  the  position  of  the  other  keys,  in  the 
beginning  lessons,  located  from  these  points.  Adjust  your  chair 
that  you  may  sit  in  a  comfortable  position,  with  your  back 
resting  against  the  back  of  the  chair.  The  fingers  curve  grace- 
fully toward  the  keys.  The  keys  are  struck  with  the  ball  of  the 
finger.  The  sight  should  be  directed  constantly  toward  the  copy. 
It  is  seldom  necessary  to  look  at  the  machine,  and  it  should 
never  be  necessary  to  look  at  the  keyboard. 

How  to  Begin 

Place  the  hands  over  the  keyboard,  with  the  little  fingers 
resting  on  the  guide  keys  ("a"  and  ";"),  and  the  third,  second, 
and  first  fingers  resting  on  the  next  three  keys  toward  the  middle 
of  the  keyboard  on  the  same  row.  Practice  placing  the  hands  on 
the  keyboard  in  this  way  and  removing  them  repeatedly  until 
the  movements  can  be  accomplished  accurately  without  looking 
at  the  keyboard.  With  the  hands  placed  on  the  keyboard  in 
this  manner,  the  first  finger  of  the  right  hand  will  then  be 
resting  over  "j"  and  the  left  first  finger  over  "f."  With  these 
points  fixed  in  mind,  you  can  easily  get  the  location  of  the  other 
letters  of  the  central  division  by  consulting  the  chart.  A  little 
practice  will  enable  you  to  locate  "j"  and  "f"  positively  and 
quickly  by  merely  placing  the  hands  in  position.  After  you 
have  established  the  "feel"  of  the  "j"  and  "f"  positions,  it 
will  be  well  to  practice  the  touch  on  these  keys,  striking  first 


THE  TYPEWRITER  141 

"j"  and  then  "f"  with  a  firm,  staccato  touch,  lifting  the  finger 
immediately.  Practice  these  movements  until  you  can  strike 
the  keys  accurately  and  with  an  even  touch. 

The  next  step  is  to  learn  to  make  the  reach  to  "h"  and  "g," 
and  to  strike  these  keys  with  an  even  touch.  Practice  a  few 
lines  of  the  letters  "jhfg"  until  you  have  the  positions  well 
fixed  and  can  strike  the  keys  firmly  in  the  center.  Then  attack 
the  upper  row  of  keys,  beginning  with  "u,"  which  as  you 
will  see  by  the  chart,  is  directly  above  "j."  Practice  passing 
from  "j"  to  "u"  a  few  times  until  you  accustom  yourself  to 
the  distance.  Go  slowly,  deliberately.  Make  sure  of  your  ground 
at  each  step  by  analyzing  the  movements.  Next  practice  mov- 
ing from  "u"  to  "y,"  then  write  the  letters  "juy"  a  few  times. 
Then  practice  moving  directly  from  "j"  to  "y." 

Proceed  with  the  left-hand  division  in  the  same  way,  starting 
with  "f"  and  working  to  "r"  and  "t,"  and  so  on.  The  bottom 
row  of  keys  should  then  be  learned  in  the  same  way.  Afterwards 
practice  a  few  lines  of  the  different  keys  in  vertical  rows — 
"ujm,"  "yhn,"  "rfv,"  "tgb."  Then,  to  test  your  accuracy  in 
judging  distance,  try  passing  from  the  lower  row  to  the  upper, 
and  vice  versa,  writing  "mu,"  "ny,"  "vr,"  "bt." 

Practice  two  lines  of  each  vertical  row  of  keys,  thus:  ujm, 
yhn,  mju,  nhy,  rfv,  tgb,  vfr,  bgt. 

All  of  these  exercises  should  be  practiced  by  touch.  Keep 
your  eyes  fixed  on  the  chart  and  not  on  the  keyboard  of  the 
machine.  You  should  now  be  ready  for  the  formal  work  of  the 
first  lesson.  The  same  method  may  be  applied  to  learning  the 
location  of  letters  in  the  other  divisions. 

P'ollow  closely  the  fingering  given  on  the  charts;  each  finger 
must  be  confined  strictly  to  its  own  territory.  In  this  lesson 
all  of  the  writing,  it  will  be  noted,  is  done  with  the  first 
fingers. 

Make  a  complete  copy  of  each  exercise  before  starting  an- 
other, even  though  you  make  some  mistakes.  Each  exercise  is 
planned  to  give  a  definite  training.  In  order  to  get  this  training 


142 


OFFICE   PRACTICE 


it  is  necessary  to  write  all  of  the  exercise  each  time  you  attempt 
it.  Do  not  be  satisfied  with  merely  writing  the  exercise  once, 
but  repeat  it  until  a  complete  mastery  of  the  movements  and 
the  location  of  the  keys  is  established. 

Inspect  your  writing  at  the  end  of  each  line  in  the  first 
two  or  three  lessons,  so  that  you  may  note  any  unevenness 
of  touch  and  correct  it  in  the  next  line.  After  you  have 
made  sure  that  your  touch  is  correct,  discontinue  inspecting 
the  writing. 

Do  net  attempt  to  correct  misprinted  letters  until  you  get 
your  fingers  under  control.  Naturally,  you  will  strike  the 
wrong  letter  occasionally.  The  work  of  this  lesson  is  not  com- 
plete however,  until  you  make  a  correct  copy  by  touch. 

Note:    All  keys  are  struck  with  the  FIRST  finger. 


OOO®(M)®OOOO 

®oo©@\®®oo©c 
ooo®®®®ooo 


SPACEBAR. 


First  Exercise 

Practice  the  following  combinations  until  the  location  of  each 
key  is  memorized: 

jhfg  fgjh  jhfg  fgjh  jhfg  fgjh  jhfg  fgjh  jhfg  fgjh  jhfg  fgjh  jhfg  fgjh 
jfhg  fjgh  jfhg  fjgh  jfhg  fjgh  jfhg  fjgh  jfhg  fjgh  jfhg  fjgh  jfhg  fjgh 


juyj    frtf  kuyj   frtf  juyj    frtf  juyj   frtf  juyj   frtf  juyj   frtf  juyj    frtf 
jmnj  fvbf  jmnj  fvbf  jmnj  fvbf  jmnj  fvbf  jmnj  fvbf  jmnj  fvbf  jmnj  fbvf 


THE  TYPEWRITER  143 

Second  Exercise 

Repeat  each  line  of  the  exercise  until  rhythm  and  speed 
are  secured. 

jug  jug  jug  jug  jug  jug  jug  jug  jug  jug  jug  jug  jug  jug  jug  jug  jug  jug 
but  but  but  but  but  but  but  but  but  but  but  but  but  but  but  but  but 
buy  buy  buy  buy  buy  buy  buy  buy  buy  buy  buy  buy  buy  buy  buy 
thumb  thumb  thumb  thumb  thumb  thumb  thumb  thumb  thumb  thumb 

Third  Exercise 

Repeat  each  line  several  times,  writing  rather  deliberately 
but  in  rhythm. 

jug  fur  but  fun  buy  turn  thumb  truth  rug  gnu  urn  tub  numb  untruth 

thug 

jury  nut  hug  bun  mug  huffy  hubbub  burn  funny  murmur  grum  burr 

hymn  rut 

rung  nutty  hungry  brunt  hung  unhurt  turn  gunny  hurry  grub  bug 

tug  hunt 

gummy  turf  thrum  grub   ruff  ruby   hurt  tuft  runt   unhung  numb 

humbug  fury 

Words  of  High  Frequency 

The  words  of  high  frequency  are  to  the  typist  what  the  word- 
signs  are  to  the  shorthand  writer.  They  make  up  the  larger 
part  of  all  writing.  If  the  fingering  of  these  is  thoroughly  mas- 
tered and  the  words  can  be  written  without  conscious  attention, 
the  speed  of  the  writer  will  be  greatly  increased.  Facility  in 
executing  these  words  will  also  influence  very  greatly  the  speed 
and  rhythm  of  other  words. 

After  completing  Exercises  i,  2,  and  3,  write  two    lines  of 


144  OFFICE   PRACTICE 

each  word  in  the  list,  and  repeat  until  the  words  can  be  written 
smoothly  and  without  effort. 

my  but  try  jury 

by  buy  turn  truth 

Note:  All  keys  are  struck  with  the  SECOND  ringer. 


OCKDOOOOQOOO 
®O®OOOO®O(DO 

oo©oooo©oo 


SPACEBAR. 


Write  the  following  on  the  keyboard. 

First  Exercise 

Write  two  lines  of  each  word,  starting  from  home  "position'* 
on  each. 

kick  nine  cite  huge 

dice  edit  very  mere 

Second  Exercise 

Repeat  the  entire  exercise  five  times: 

edict  eject  fight  there  judge  juice  chief  truce  tried  trick  right  bring 
check  erect  might  every  being  edify  fruit  educe  cured  brute  their  three 
thick  thing  brief  civic  entry  fifty  incur  merit  never  under  truer  river 
there  brick  enemy  drive  entry  hinge  ridge  fiend  merry  greed  thyme 


THE  TYPEWRITER 


Third  Exercise 

Write  each  line  five  times;    repeat  if  time  permits: 

very  much  in  need  very  much  in  need  very  much  in  need  very  much 

in  need 

return  by  freight  return  by  freight  return  by  freight  return  by  freight 
receive  the  check  receive  the  check  receive  the  check  receive  the  check 

Words  of  High  Frequency 

Repeat  each  word  until  smoothness  in  operation  and  even 
touch  are  acquired.  Start  from  "home  position"  each  time 
you  write  the  word. 


in 

the 

ever 

given 

it 

did 

here 

buyer 

me 

end 

even 

regret 

if 

him 

much 

three 

be 

her 

time 

thing 

he 

big 

they 

think 

Note:   All  keys  are  struck  with  the  THIRD  finger 


Q®OOOOOO$OO 

D®(DOOOOOO©(0C 

©  o®oooooooo 


SPACE  BAR. 


First  Exercise 

Follow  instruction  of  preceding  lesson. 

lost  wild  oils 

slow  sold  wise 


list 
wish 


146  OFFICE   PRACTICE 

Second  Exercise 

Follow   instructions    given    in    second    lesson   on    keyboard 
exercises. 

bundle  sundry  excuse  yellow  swerve  revive  little  holder  exhort  summer 
fellow  wisdom  vessel  motion  sister  wonder  sought  window  system 
between  extreme  thought  without  sincere  refund  involve  leisure  exists 

shift    exercise    wrought    north    resumed    grown    excited    numerous 

recommend 

Third  Exercise 

Follow   instructions   given    in    second    lesson   on    keyboard 
exercises. 

we  were  told  they  were  to  be  there  we  were  told  they  were  to  be  there 
we  do  not  believe  the  business  will  justify  the  extension  you  suggest 
the  solicitor  for  the  executor  resisted  the  orders  without  conscience 

Words  of  High  Frequency 
Write  two  lines  of  each  word. 

as  all  also  quite 

at  are  that  equal 

am  ask  many  small 

an  has  take  usual 

of  pay  what  after 

up  was  dear  shall 

Note:  All  keys  are  struck  with  the  FOURTH  finger. 


®oooooooo©o 

D®OOOOOOOO©O 
(DOOOOOOOOO 


SPACEBAR. 


THE  TYPEWRITER  147 

First  Exercise 

Follow  instructions  given  in  lesson  2. 

power  point  apply  place 

azure  quick  equal  asked 

Second  Exercise 

Repeat   each   line   until   rhythm,   accuracy,   and   speed    are 
acquired. 

practice  acquire  property  above  policy  zone  quality  presented  realized 
purpose  reply  inquire  prompt  question  public  apply  about  prove  private 

acquaint  package  open  queer  request  zero  telephone  message  quarter 

way 
prepare  about  promise  zinc  perfect  await  profit  zealous  problem  please 

quit  piece  prefer  quick  person  aspire  quote  appear  after  appoint  which 
portion  expiration  applause  acquisition  equal  acquit  apology  anxiously 

aqueduct  approach  pleasure  assets  price  average  pay  argue  associate  at 
poor   assumes   plain   attention   query   squirm   pounds   squares   allow 

squeeze 

Third  Exercise 

Write  each  sentence  five  to  ten  times, 
nothing  is  useless  to  the  man  of  sense;   he  turns  everything  to  account 

men  discriminate  in  the  affairs  of  others  much  better  than  in  their  own 

whenever  the  big  black  fox  jumped  the  squirrel  gazed  very  suspiciously 
. 

Words  of  High  Frequency 

Write  two  lines  of  each  word,  starting  each  time  from  "home 
position." 

go  any  far  not  say 

no  and  one  how  sir 

on  ago  men  she  due 

so  big  use  get  got 

of  can  yet  ton  old 

or  day  its  six  nor 


148  OFFICE   PRACTICE 

Capital  Letters 

To  make  capital  letters,  depress  the  shift-key  firmly  with  the 
fourth  finger  and,  while  holding  it  down,  strike  the  letter  desired. 
Do  not  strike  the  letter  until  the  shift-key  is  depressed  to  the  fullest 
extent,  and  do  not  release  the  shift-key  until  after  the  letter  has 
been  struck. 

If  the  capital  letter  desired  is  on  the  right-hand  side  of  the 
keyboard,  use  the  left-hand  shift,  and  vice  versa. 

Practice  making  a  few  of  the  following  combinations  until  you 
understand  the  shift-key  thoroughly:  PI,  As,  Hu,  Qo,  La, 
James,  William,  New  York,  Chicago,  Philadelphia,  P.  I.,  N.  H. 

Write  the  following  sentence  ten  times,  or  until  the  shifting 
for  capitals  is  mastered. 

Raphael  paints  wisdom,  Handel  sings  it,  Phidias  carves  it, 
Shakespeare  writes  it,  Wren  builds  it,  Columbus  sails  it, 
Washington  arms  it,  Watt  merchandises  it. — Emerson. 

First  Exercise 

Fill  one  line  with  each  word;  repeat  whole  exercise  until 
smoothness  in  operation  is  assured. 

appear          appear  arouse  arouse  appall  appall 

policy  policy  allege  allege  escape  escape 

Second  Exercise 

Write  each  two-line  group  five  times,  starting  from  "home 
position"  on  each  line. 

bazaar  people  fall  amazing  zest  utilize  puzzle  opaque  departs  citizen 
can  quiet  pattern  unique  act  pretty  quinine  day  pictures  supper  calls 

equip  pressure  cash  reveal  paid  typify  fame  opera  animals  zenith  came 
conqueror  east  dozen  harm  zeal  receipt  patient  glade  evade  fair  elapse 

quart  year  quit  saw  zephyr  proper  quickly  adds  inquiry  poised  quartet 
ability  prudent  shall  piquant  said  esteem  prizes  yards  had  rear  happy 

razor  qualify  potato  afterward  balance  frozen  extra  air  prelude  amaze 
pack    arm    piano    equator   ordinary    rapidly    make   copies    necessary 

shipped 


i49 


THE  TYPEWRITER 

Third  Exercise 

Write  first  three  sentences  five  times  each;  last,  ten  times. 
The  last  sentence  contains  all  the  letters  of  the  alphabet  and  is 
useful  as  a  review  for  each  key  position. 

The  path  of  success  in  business  is  invariably  the  path  of  common  sense. 
Write  it  on  your  heart  that  every  day  is  the  very  best  day  in  the  year. 
Luck  counts  once  in  a  while  but  trained  efficiency  counts  all  the  time. 
Paul  asserted  that  the  quick  brown  fox  slyly  jumped  over  the  lazy  dog. 

NUMERALS 


®OOOOOOOO(DO 


Strike  small  1  for  the  figure  one.  Use  capital  O  for  the  cipher 
on  machines  not  provided  with  a  cipher.  Use  capitals  for 
Roman  numerals. 


First  Exercise 

Write  the  entire  exercise  as  shown;    repeat. 

y6uyi8o9po    W2e3r4t5  y6u7i8o9po 
W2e3r4t5 

6yyu8i9oop 


6yyu8i9oop 


y6yu  i89o  pO2w  e34r  w23e  r45t  y6yu  i89o  po2w  e34r  23456789 
2638  3947  5876  9102  3524  4739  2638  3947  5876  9102  3524  4739  23456789 

1234567890  1234567890  1234567890  1234567890  1234567890  123456789 
0987654321  0987654321  0987654321  0987654321  0987654321  098765432 


OFFICE   PRACTICE 
Second  Exercise 


One  copy: 


Alabama  5406  Alaska  4609  Arizona  2273  Arkansas  5335  California  8368 
Colorado  5409  Connecticut  9998  California  7823  Delaware  3345 
Florida  5119  Georgia  77439  5748  36490  Idaho  2039  Kansas  8745  Loui- 
siana 6758  Maine  2039487  Nebraska  6758  New  York  3948  Ohio  3920 
Pennsylvania  Rhode  Island  2050  South  Carolina  3686  Tennessee  487 
Utah  2093  Vermont  1073  Washington  5248  Wisconsin  89  world  3084 
manhood  3084  quince  3084  similar  3084380  serious  9152  upward  9152 
machines  QIC2  business  qit;2 


One  copy: 

This  may  be  written  in  the  form  of  an  invoice,  or  copied 
as  written  above  as  a  salesman's  order. 

On  March  9,  1921,  you  bought  the  following  bill  of  merchandise  from 
Ward  &  Duff,  manufacturers  of  men's  shirts,  1062  Tenth  Street,  Troy, 
N.  Y.  terms  3/10,  2/15,  n/3o;  10  doz.  no.  631  madras  shirts  at  $12.50 
per  dozen;  $125;  5  doz.  no.  269  silk  shirts  at  $30  per  dozen,  $158; 
total  $275.  Shipped  f.o.b.  New  York. 

Third  Exercise 

Never  trouble  another  to  do  for  you  what  you  can  do  for  yourself. 

Labor  to  keep  alive  in  your  breast  that  little  spark  of  celestial  fire 
called  conscience. 

We  dislike  to  exchange  job  lots  of  sizes  varying  from  a  quarter  up. 


ooooooooooo 

gidOOOOOQQCX&Q 


THE  TYPEWRITER  151 

First   Exercise 
One  copy: 

W2  63  r4  t5  y6  07  i8  09  po  w2  63  r4  t$  y6  uy  18  09  po  w2  63  r4 15  y6  117 
S2  d3  £4  g5  h6  jy  k8  19  ;o  s2  d3  £4  g5  h6  j/  k8  19  ;o  s2  de  £4  g5  h6  jy 

"2  #3  #4  %S  -6  &7  '8  (9  )o  "2  #3  £4  %S  -6  &7  '8  (9  )  o  "2  #3  #4  %S 

-6  &7 
"w  #  &  %e  -y  &u  'i  (o  )p  "w  #e  $r  %t  -y  &u  'i  (o  )p  "w  #e  £r  %t 

-y  &u 
O'Hare  &  Co.,   1684  (95$)   bags  pure  "Star"   salt,  £2.37,   15%  off, 

10  days. 

O'Hare  &  Co.,   1684  (95$)   bags  pure  "Star"  salt,  $2.37,   15%  off, 

10  days. 

Words  of  High  Frequency 
Write  two  lines  of  each  word. 


send 

true 

reply 

state 

assure 

seem 

them 

shall 

these 

amount 

said 

term 

start 

those 

almost 

soon 

than 

still 

their 

appear 

says 

this 

study 

there 

attend 

time 

talk 

stock 

truly 

afraid 

then 

with 

today 

appear 

arrive 

tell 

week 

since 

access 

astray 

upon 

were 

spent 

adjust 

answer 

work 

what 

under 

across 

become 

went 

want 

usual 

advise 

bottom 

wire 

wish 

value 

affect 

beyond 

Third   Exercise 

Few  of  the  things  that  come  to  the  man  who  waits  are  the  things  he 
has  been  looking  for.  (19-4.1) 

The  more  business  a  man  has  to  do,  the  more  he  is  able  to  accom- 
plish; for  he  learns  to  economize  his  time.  (22-4.8) 

A  man  should  never  be  ashamed  to  own  that  he  has  been  in  the 
wrong,  which  is  but  saying  in  other  words  that  he  is  wiser  to-day  than 
he  was  yesterday.  (31-4.7) 


1 52  OFFICE   PRACTICE 

The  public  was  amazed  to  view  the  quickness  and  dexterity  of  the 
juggler.  (I3-5-6) 

Few  of  the  things  that  come  to  the  man  who  waits  are  the  things  he 
has  been  looking  for.  (19-4.1) 

The  more  business  a  man  has  to  do,  the  more  he  is  able  to  accom- 
plish; for  he  learns  to  economize  his  time.  (22-4.8) 

A  man  should  never  be  ashamed  to  own  that  he  has  been  in  the 
wrong,  which  is  but  saying  in  other  words  that  he  is  wiser  to-day 
than  he  was  yesterday.  (31-4.7) 

The  public  was  amazed  to  view  the  quickness  and  dexterity  of  the 
juggler.  (I3-S-6) 


oooooooooo® 

g)(A)OOOOOQOO(j> 


First  Exercise 

Repeat  first  and  second  lines  five  times;  write  last  three  lines 
once,  as  shown. 

234X  6789^"  234X  6789^  23406789^  234^  6789^  234^  6789^ 

234K  789K  234^ 

1-384756^  2-384756^  3-384756^  4-384756®  5-384756^  6-384756^ 

7-384756^ 


$5.25  $5.25  £5.25  £5.25  $5.25  $5.25  $5.25  $5.25  £5.25  $5.25  $5.25  $5.25 
#400,  #589,  #872,  #641,  #753,  #495,  #654,  #861,  #679,  #251,  #759, 

#357- 

Second  Exercise 

Our  grand  business  is  not  to  see  what  lies  dimly  in  the  distance, 
but  to  do  what  lies  closely  to  hand.  (21-5.05) 


THE   TYPEWRITER 


153 


A  word  that  has  been  said  may  sometimes  be  unsaid — it  is  but  air — 
but  when  a  deed  is  done,  it  cannot  be  undone,  nor  can  our  thoughts 
reach  out  to  all  the  mischiefs  that  may  follow.  (37-4.84) 

When  we  have  parctices  good  actions  awhile,  they  become  easy; 
when  they  are  easy,  we  take  pleasure  in  them;  when  they  please  us, 
we  do  them  frequently;  and  then,  by  frequency  of  act,  they  grow  into 
a  habit.  (38-5.3?) 

My  help  squeezed  in  and  joined  the  weavers  again  before  six  o'clock. 

Words  of  High  Frequency 
Write  two  lines  of  each  word. 


word 

year 

firm 

four 

full 

form 

half 

hand 

hold 

hope 

help 

here 


feel    ' 

five 

give 

gave 

gone 

high 

home 

into 

just 

know 

live 

knew 


world 
which 
would 
young 
wrote 
where 

kind 
late 
last 
life 

list 
look 


belong 

before 

better 

charge 

credit 

course 

amiss 
claim 
debit 
favor 
found 
first 


change 

clause 

cannot 

cancel 

custom 

desire 

hurry 

issue 

light 

local 

might 

money 


INTRODUCTION    TO    SPEED    STUDIES 

Copy  the  following: 

The  student  should  let  speed  alone  until  he  has  acquired 
habits  of  accuracy  in  typing.  Accuracy  is  of  the  first  consid- 
eration. Speed,  of  course,  is  necessary,  but  it  is  something  that 
must  be  built  on  the  solid  foundation  of  accuracy. 

When  the  habit  of  accuracy  has  been  formed  some  work 
must  be  done  to  accelerate  movement — but  this  should  never  be 
attempted  at  the  expense  of  accuracy. 

When  he  can  operate  the  keyboard  with  certainty,  when  he 
knows  the  exact  location  of  every  key  and  can  strike  it  unhesi- 


i54  OFFICE   PRACTICE 

tatingly,  he  can  begin  some  work  in  accelerating  movement  on 
continuous  matter. 

Speed  is  the  result  of  five  things:  First,  efficient  fingering 
ability;  second,  accuracy;  third,  continuity  of  operation; 
fourth,  steady  nerves;  and,  fifth,  concentration.  The  impor- 
tance of  the  latter  feature  can  hardly  be  overemphasized. 
Acquire  the  habit  of  concentration  early  in  your  work.  Perform 
all  of  your  work  with  the  utmost  concentration  that  you  can 
command.  The  habit  will  grow,  and  as  it  does,  your  typing 
efficiency  will  increase. 

It  is  thought  that  continuous,  concentrated  effort  toward 
the  object  of  gaining  speed  will  yield  quicker  and  more  lasting 
results.  The  following  plan  is  suggested  for  the  student  to  follow 
in  the  absence  of  more  definite  instructions: 

Each  exercise  should  be  written  and  rewritten  until  the  re- 
quired speed  is  obtained.  The  first  time  the  exercise  is  written 
the  time  should  be  noted,  if  the  required  speed  is  not  attained 
on  the  first  copy,  continue  the  practice  until  it  is  reached.  The 
oblique  character  /  in  the  exercises  indicates  the  end  of  the  test, 
but  the  sentences  in  all  cases  have  been  completed. 

The  importance  of  accuracy  must  always  be  kept  in  mind. 
But  it  is  to  be  expected  that  errors  will  be  made  when  the  forcing 
of  acceleration  is  begun.  Therefore  in  correcting  the  practice 
work  in  the  Speed  Studies,  the  rules  used  in  the  International 
Contests  may  be  applied. 

International  Rules  for  Correcting  Copy 

General  Rules 
I.     The  writing  should  be  double  space  on  legal  size  paper 


x  13  inches). 

2.  But  one  error  shall  be  counted  in  any  one  word. 

3.  The  first  writing  only  is  to  be  considered  in  all  matter 
which  is  rewritten.     The  rewritten  matter  should  be  penalized 
as  one  error  only. 


THE  TYPEWRITER  155 

4.  The  marginal   stops  should   be  set  so   as  to  make  the 
writing  line  seventy  spaces  long. 

5.  Paragraphs  may  be  indented  five  or  ten  spaces,  but  must 
be  uniform  throughout. 

How  Errors  are  Counted 

Five  words  from  the  total  number  written  are  deducted  for 
each  of  the  following  errors: 

1.  Improper  spacing. 

2.  Omission  of  a  word. 

3.  Striking  a  wrong  letter. 

4.  Faulty  use  of  shift  key. 

5.  Transposition  of  .letters  or  words. 

6.  Undue  margin  at  bottom  of  sheet. 

7.  Piling  letters  at  end  of  line  or  elsewhere. 

8.  Failure  to  commence  line  at  starting  point. 

9.  Inclined  margin  caused  by  not  starting  paper  straight  in 
machine. 

10.  Deviation    from    copy    in    punctuation,    capitalization, 
paragraphing,  etc. 

11.  Unevenness  in  the  right-hand  margin. 

Speed  Tests 

Two-minute  Tests 

First  Exercise 

Speed,  40;  Time,  2:16 

The  first  rule  for  a  good  style  is  that  the  author  should  have 
something  to  say;  nay,  that  is  in  itself  all  that  is  necessary. 
Clear  thought  easily  finds  words  to  fit  it.  Words,  it  is  true, 
serve  to  make  thought  intelligible — but  only  up  to  a  certain 
point.  If  words  are  heaped  up  beyond  it,  the  thought  becomes 
more  and  more  obscure  again.  To  find  where  the  point  lies  is 


156  OFFICE   PRACTICE 

the  problem  of  style,  and  the  business  of  the  /  critical  faculty; 
for  a  word  too  much  always  defeats  its  purpose. — Schopenhauer. 

(9I-5-3) 
Second  Exercise 

Speed,  40;  Time,  2:18 

As  I  was  rambling  one  day  about  the  Moorish  halls,  my  atten- 
tion was,  for  the  first  time,  attracted  to  a  door  in  a  remote 
gallery,  communicating  apparently  with  some  part  of  the  Alham- 
bra  which  I  had  not  yet  explored.  I  attempted  to  open  it, 
but  it  was  locked.  I  knocked,  but  no  one  answered,  and  the 
sound  seemed  to  reverberate  through  empty  chambers.  Here 
then  was  a  mystery.  Here  was  the  haunted  wing  of  the  castle. 
How  was  I  to  /  get  at  the  dark  secrets  here  shut  up  from  the 
public  eye? — -The  Alhambra.  (92~5-3) 

Third  Exercise 
Speed,  40;  Time,  2:25 

If  you  would  be  loved  as  a  companion,  avoid  unnecessary 
criticism  upon  those  with  whom  you  live.  The  number  of  peo- 
ple who  have  taken  out  judges'  patents  for  themselves  is  very 
large  in  any  society.  Now  it  would  be  hard  for  a  man  to  live 
with  another  who  was  always  criticizing  his  actions,  even  if  it 
were  kindly  and  just  criticism.  It  would  be  like  living  between 
the  glasses  of  a  microscope.  But  these  self-elected 'judges,  like 
their  prototypes  /  are  very  apt  to  have  the  persons  they  judge 
brought  before  them  in  the  guise  of  culprits.—  Arthur  Helps. 

(97-5-5) 
Fourth  Exercise 

Speed,  40;   Time,  2:04 

These  are  the  times  that  try  men's  souls.  The  summer  soldier 
and  the  sunshine  patriot  will,  in  this  crisis,  shrink  from  the 
service  of  their  countrv;  but  he  that  stands  it  now,  deserves 


THE  TYPEWRITER  157 

the  love  and  thanks  of  man  and  woman.  Tyranny,  like  hell, 
is  not  easily  conquered;  yet  we  have  this  consolation  with  us, 
that  the  harder  the  conflict,  the  more  glorious  the  triumph. 
What  we  obtain  too  cheap,  we  esteem  too  lightly;  it  is  dearness 
only  that  gives  /  everything  its  value. — Paine.  (83-5.6) 


Fifth  Exercise 
Speed,  40;  Time,  2:43 

The  ability  to  write  a  good  business  letter  is  a  valuable  asset. 
Since  almost  every  large  transaction  turns  on  the  pivot  of  a 
letter,  the  man  who  writes  the  letter  wields  a  power  which  is 
worth  cultivating.  To  place  a  proper  estimate  on  the  power  of 
letter-writing  is  a  big  step  towards  business  success.  Everyone 
has  heard  of  instances  where  a  single  letter  has  turned  the 
favors  of  fortune.  The  chief  ways  of  developing  ability  in  this 
field  are  /  as  follows:  write  important  letters  by  hand  before 
dictating,  consider  the  relative  merits  of  incoming  correspond- 
ence, study  the  art  of  rhetoric,  and  take  pains  with  every  letter 
you  write. —  Thoughts  on  Business.  (109-5.8) 

Sixth  Exercise 

Speed,  40;   Time,  2:15 

As  every  business  man  has  something  to  sell — merchandise 
or  services — it  is  important  to  acquire  those  qualities  which  go 
to  make  up  salesmanship:  courtesy,  tact,  knowledge  of  goods, 
judgment,  accuracy,  energy,  appearance,  and  dignity.  It 
avails  nothing  to  say  that  these  qualities  are  inborn.  Whoever 
lacks  them  can  measurably  acquire  them.  The  way  to  do  so 
is  open;  observe  those  who  possess  them,  adapt  but  do  not  imi- 
tate their  best  traits,  analyze  the  subject  and  master  it  in  sec- 
tions, /  love  your  work,  and  be  in  earnest  all  the  time. — • 
Thoughts  on  Business.  (9°~5-9) 


1 58  OFFICE   PRACTICE 

The  Mechanical  Arrangement  of  a  Business  Letter 

To  the  business  man,  the  mechanical  work  on  a  letter — its 
form,  arrangement,  and  appearance — is  a  mere  detail,  and  is 
the  last  thing  considered,  if  it  is  done  right.  But  it  looms  big 
if  it  is  not.  The  stenographer's  work  is  always  judged  by  the 
quality  of  the  transcript.  His  shorthand  may  be  abominable, 
but  if  he  is  able  to  read  it  (he  generally  cannot  do  so  unless  the 
shorthand  is  good)  and  can  turn  out  a  neatly  arranged,  accu- 
rately typed  letter,  his  work  will  meet  the  requirements.  Thus 
the  mechanical  features  of  a  letter  become  of  the  utmost  impor- 
tance to  the  typist. 

The  Parts  of  a  Business  Letter 

Theoretically,  the  business  letter  consists  of  the  following 
parts: 

1.  The  Heading.     This  embraces  the  printed  or  engraved 
name  and  address  of  the  individual,  firm,  or  corporation  sending 
the  letter.    This  information  usually  contains,  in  addition  to  the 
name  and  address,  the  telephone  number  and  other  facts  for 
the  convenience  of  the  concern's  correspondents. 

2.  Date  Line.     The  date  line  gives  the  month,  day  of  the 
month,  and  the  year.  This,  as  will  be  seen  from  the  illustrations, 
begins  usually  about  one  double  space  below  the  printed  mat- 
ter.   The  year  need  not  be  followed  by  a  period  as  it  is  obvi- 
ously the  end  of  a  line.    The  date  line  usually  begins  about  the 
middle  of  the  page,  or  a  little  to  the  left  of  the  middle,  so  that 
the  line  will  finish  flush  with  the  body  of  the  letter. 

3.  The  Inside  Address.    This  contains  the  name  of  the  per- 
son addressed,  the  number  of  his  house  or  place  of  business, 
the  street,  city  and  state. 

4.  The  Salutation.     The  salutation  consists  of  such  words 
as   ''Gentlemen,"   "Dear  Sir,"   "Dear  Madam,"   "Dear  Mr. 
Williams,"  "My  dear  Mr.  Williams,"  etc.    The  salutation  be- 
gins flush  with  the  beginning  lines  of  the  body  of  the  letter. 


THE  TYPEWRITER  159 

5.  The  Body  of  the  Letter.     This  contains  the  message  to  be 
conveyed.   The  paragraphs  of  the  body  are  indented  five  spaces 
from  the  beginning  of  the  line. 

6.  The  Complimentary  Close.     This  consists  of  the  closing 
words  of  a  communication,   as,   for  example,   "Yours  truly," 
"Very  truly  yours,"  "Yours  sincerely,"  "Respectfully  yours," 
etc.    The  complimentary  closing  usually  starts  about  the  middle 
of  the  line.     In  many  offices  it  is  the  practice  to  begin  the  date 
line  and  the  complimentary  closing  at  the  same  point,  as  near 
the  middle  of  the  line  as  possible. 

7.  The    Signature.      This    is    usually    pen    written    by    the 
dictator. 

8.  The  Dictator's  Initials.    These,  together  with  the  stenog- 
rapher's initials,  usually  are  placed  a  double  space  below  the 
signature,  flush  with  the  lines  of  the  body  of  the  letter.    The 
initials  are  necessary  to  identify  a  letter  in  concerns  where  the 
correspondence  emanates  from  many  heads. 

. 
Proper  Margins  Important 

The  first  thing  to  be  considered  in  proper  disposition  of  the 
matter  on  the  page  is  margin,  and  it  is  in  the  arrangement  of 
the  margin  that  the  average  stenographer  discloses  his  possession 
of  the  artistic  sense  or  the  lack  of  it.  A  simple  illustration  will 
make  clear  the  correct  view  of  the  margin:  The  effect  of  a 
picture  is  much  enhanced  by  its  frame,  or  by  a  wide  mat 
around  it.  In  typing  a  letter,  just  consider  the  letter  itself  as 
the  picture,  and  the  margin,  or  wide  space  around  it,  as  the 
frame,  and  you  will  get  the  right  idea. 

As  the  present  practice  is  to  use  letterheads  of  the  same  size 
for  all  letters,  it  is  obvious  that  the  shorter  the  letter  the  wider 
the  margin  necessarily  will  be — and  this  applies  to  the  top,  the 
bottom  and  the  sides.  On  the  short  and  medium  length  letters 
the  margin  at  the  bottom  may  be  left  a  little  wider  than  the 
others,  just  as  it  is  in  first-class  books.  By  the  use  of  wide  or 


160  OFFICE   PRACTICE 

single  space,  as  the  case  may  demand,  a  good  margin  can  always 
be  obtained. 

Paragraphs  Relieve  Monotony 

Another  point  to  be  taken  into  consideration  is  paragraphing. 
Breaking  the  matter  up  into  frequent  paragraphs  prevents  a 
monotonous  appearance.  Paragraphs  are  usually  indented  uni- 
formly five  spaces.  The  following  quotation  from  Applied 
Business  English  and  Correspondence  will  serve  to  guide  the 
typist  in  a  general  way. 

"If  we  have  several  topics  to  be  discussed  in  a  letter,  each 
should  be  treated  in  one  paragraph  usually  introduced  by  a 
topic  sentence  which  prepares  us  for  what  follows.  If  the  topic 
is  such  that  an  extended  treatment  of  it  is  necessary,  it  will, 
naturally,  be  divided  into  paragraphs.  A  paragraph  should  be 
a  collection  of  sentences  treating  on  one  subject  or  on  one  view 
of  a  subject.  .  .  .  Paragraphing  at  best  is  a  question  of  taste. 
A  business  letter  may  consist  of  one  or  more  paragraphs,  accord- 
ing to  the  number  of  subjects  or  the  number  of  phases  of  one 
subject."  As  most  short  business  letters  treat  of  one  subject, 
the  general  rule  of  paragraphing  always  cannot  be  followed. 
In  short  letters,  the  introduction  usually  is  placed  in  one  para- 
graph, the  subject  treated  in  the  second,  and  the  closing  sentences 
in  the  third. 


THE  TYPEWRITER  161 

Illustration  of  a  double  space  indent  letter: 

ROGERS   PEET  COMPANY 

NEW  YORK,  N.  Y. 


August  15,  1921 
Mr.  Rupert  P.  SoRelle 

7  Kensington  Terrace 

Bronxville,  New  York 
Dear  Sir: 

As  Mr.  Omer  said  to  David  Copperf ield-- 

"Fashions  are  like  human  beings.   They 
come  in  nobody  knows  when,  why  or  how;  and 
they  go  out  nobody  knows  when,  why  or  how." 

But  that  was  "before  our  time. 

Of  course  nowadays  the  "why  or  how,"  as. 
in  Dickens'  time,  makes  little  practical  dif- 
ference, "but  most  certainly  our  friends  and 
customers,  like  your  good  self,  expect  us  to 
fenow  when. 

Right  now,  for  instance,  fall  styles  and 
the  new  "Forefather"  fabrics  are  just  in. 

May  we  have  the  pleasure  of  showing  them 
to  you? 

Respectfully, 

ROGERS  PEET  COMPANY 
FEM/GHS 


162  OFFICE   PRACTICE 

Note:  The  firm  name  in  this  letter  is  Rogers  Peet  Company.     The  date  of  the 
letter,  August  15,  1921,  is  begun  at  45  on  the  white  scale  on  the  typewriter. 

Mr.   Rupert  P.  SoRelle 
7  Kensington  Terrace 

Bronx ville,  New  York 

is  the  inside  address.     In  this  particular  letter  the  lefthand  marginal  stop 
is  set  at  10.     The  name  is  written  flush  to  the  marginal  stop,  the  street 
address  at  15,  and  the  city  and  state  at  20. 
"Dear  Sir:"  the  salutation  begins  at  the  left  marginal  stop. 
Each  paragraph  is  indented  5  spaces. 

The  complimentary  close — Respectfully — is  usually  begun  at  35  on  the 
scale. 

The  signature  consists  of  the  name  of  the  company  in  capitals  upon  whose 
letter-head  the  letter  is  written,  and  the  line  upon  which  the  signature 
of  the  person  who  signs  the  letter  is  written.  This  section  of  the  letter  is 
begun  at  40  and  at  45  if  the  indent  style  is  used.  If  the  block  style  is  used 
both  begin  on  40. 

The  initials  of  the  dictator  of  the  letter  and  of  the  stenographer  are  written 
flush  with  the  marginal  stop — FEM/GHS. 

In  a  single  space  letter  two  single  spaces  are  allowed  between  each  para- 
graph and  two  single  spaces  precede  and  follow  the  body  of  the  letter. 
Note:  The  envelope  must  be  addressed  in  the  same  style  as  the  inside  address 
of  the  letter  enclosed  in  that  envelope. 


BRYANT  &  STRATTON-RHODE  ISLAND 
COMMERCIAL  SCHOOL 

Incorporated 

IHTI.F.n    EXCHANGE  PROVIDENCE 


The  Gregg  Publishing  Company 
285  Fifth  Avenue 

New  York  City 


i.  ILLUSTRATION  OF  DOUBLE  SPACE,  INDENT  ADDRESS  ON  LARGE  ENVELOPE 


THE  TYPEWRITER 


163 


DONOVAN  &  ARMSTRONG 

Advertising 

COMMONWEALTH    BUILDING 
PHILADELPHIA 


Mr.    Ayrton  A.    Howard 
600  Fulton  Street 
Rochester,    Indiana     • 


2.  ILLUSTRATION  OF  BLOCK  FORM  OF  ADDRESS,  DOUBLE  SPACE. 


THE  PLIMPTON  PRESS 

NORWOOD,  MASS.,  U.  S.  A. 

Perfect  Bookmaking  in  its  Entirety 


Benziger  Bros . ,   Publishers 
36  Barclay  Street 
New  York  City 


3.  ILLUSTRATION  OF  DOUBLE  SPACE,  INDENT  ADDRESS. 


164  OFFICE   PRACTICE 


J.  E.  LINDE  PAPER  Co. 

BEEKMAN  &  CLIFF  STS. 
NEW  YORK 


Mr.  E.  L.  Morgenstern 
Mississippi  River  Commission 
12th  Floor,  Queen  &  Crescent  Bldg. 
New  Orleans,  Louisiana 


4.  ILLUSTRATION  OF  FOUR-LINE  ADDRESS,  SINGLE  SPACE,  BLOCK. 

The  following  letters  are  taken  from  Shorthand  Dictation 
Drills,  by  John  Robert  Gregg. 

Make  a  correct  copy  of  each  exercise,  using  the  model  as  a 
guide  for  arrangement. 

Note:  Use  your  city  and  state  and  the  current  date.  Use  the  names  of  the 
customers  and  creditors  of  the  McGill  Company  (see  Chapter  Ten)  for 
the  name  of  the  firm  on  the  letterhead  for  the  Incoming  Mail.  Use 
the  McGill  Company  for  Outgoing  Mail. 

Center  the  name  of  the  firm  and  allow  a  space  of  about  two  inches  from 
the  top  of  the  paper.     Send  these  letters  to  the  Filing  and  Outgoing 
*       Mail  Departments. 

Mr.  Edward  Wallace,  Savannah,  Georgia.  Dear  Sir:  We 
have  your  bill  for  thirty  dozen  combs.  Our  order  was  for  a 
duplicate  of  your  invoice  913,  and  these  combs  are  not  what 
we  wish.  The  comb  we  carry  is  like  the  cut  which  we  inclose. 
If  you  can  duplicate  it,  send  the  thirty  dozen  combs  imme- 
diately. How  shall  we  return  the  combs  on  hand?  Yours  truly, 


THE  TYPEWRITER  165 

The  McGill  Company,  210  Bedford  Street,  Stamford,  Conn. 
Gentlemen:  We  are  using  a  new  kind  of  ink  on  your  job,  and 
we  know  that  you  will  like  it.  The  paper  and  type  are  fine, 
and  the  whole  will  look  well.  The  books  will  be  ready  early 
in  the  week  and  will  be  sent  to  you  at  that  time.  If  you 
wish  to  call  at  our  shop  to-morrow,  we  can  show  you  a  few 
pages.  The  prices  on  both  ink  and  paper  are  increasing  every 
day  and  you  are  saving  money  by  having  your  fall  lot  of  books 
printed  now.  Yours  very  truly, 

Mr.  George  D.  Maguire,  Buffalo,  New  York.  Dear  Sir: 
The  mortgage  we  have  on  your  house  and  lot  will  be  due  on  the 
25th  of  this  month.  The  house  needs  painting  and  the  tenants 
say  the  roof  leaks  every  time  it  rains.  If  you  wish  us  to  renew 
the  mortgage  for  three  years,  we  will  do  so  if  you  will  paint 
the  house  and  put  on  a  new  roof.  This  will  insure  its  being 
leased  for  the  term  of  the  mortgage.  If  you  are  not  willing  to 
do  this,  we  shall  have  to  ask  you  to  arrange  to  take  care  of  the 
mortgage  when  it  becomes  due.  Yours  respectfully, 

Mr.  Jerome  Thompson,  Nashua,  N.  H.  Dear  Sir:  Kindly 
inform  us  what  has  occurred  in  connection  with  the  Rogers 
matter.  The  interest  on  this  loan  is  due  March  19  and  we  have 
been  hoping  that  the  principal  and  interest  would  be  settled  at 
that  time.  Your  clients  should  really  pay  ^/2  per  cent  on  the 
interest  if  it  is  not  paid  when  due.  Also  kindly  give  me  the  name 
and  address  of  the  proper  person  to  communicate  with  in  regard 
to  the  interest  due  on  March  19.  We  shall  appreciate  it  if  you 
will  write  him  in  regard  to  this  interest  so  that  there  will  be  no 
question  about  its  being  paid  promptly.  Yours  truly, 

McDonald  &  Rich,  Providence,  R.  I.  Gentlemen:  We  regret 
that  we  shall  not  be  able  to  give  you  any  business  for  the  reason 
that  your  shipping  points  are  so  far  from  us  that  it  makes  our 
freight  rates  excessive.  Besides  prices  on  our  products  have  not 
advanced  sufficiently  to  warrant  our  paying  the  prices  you  are 
now  asking  for  mattress  stock.  We  have  a  fair  supply  on  hand, 


1 66  OFFICE    PRACTICE 

but  we  shall  undoubtedly  have  to  purchase  an  additional  stock 
within  the  next  two  or  three  months.  It  is  possible  that  we 
shall  take  the  matter  up  with  you  later,  and  if  so,  some  business 
may  come  your  way.  We  thank  you  very  much  for  the  quota- 
tions and  information  which  you  have  furnished  us.  The  booklet 
will  be  kept  in  our  files.  Yours  truly, 

Illustration  of  single  space  letter  with  block  inside  address 
and  block  signature. 

MARSHALL   FIELD   &  CO. 
CHICAGO,  U.  S.  A. 


July  20,  1916 

Miss  Pauline  M.  Caldwell, 
Hotel  Blackstone, 
Chicago,  Illinois. 

Dear  Madam: 

We  regret  our  inability  to  adjust  the 
transaction  pertaining  to  the  curtains  accord- 
ing to  your  wishes,  owing  to  the  fact  that  our 
stock  is  exhausted. 

If  you  intend  to  "be  in  the  store  in  the 
near  future,  we  recommend  that  you  stop  at  our 
Adjusting  Bureau,  as  we  "believe  a  personal  in- 
terview will  assist  in  disposing  of  this  mat- 
ter to  your  satisfaction.   In  the  event  of 
your  calling,  please  present  this  letter  for 
reference,  so  that  there  will  be  no  delay  in 
connecting  the  previous  papers. 

Yours  very  truly, 
MARSHALL  FIELD  &  COMPANY 
MP/VJ  By 


THE  TYPEWRITER  167 

Make  a  correct  copy  of  each  exercise,  using  the  model  as  a 
guide  for  arrangement. 

Brown  &  Sharp  Mfg.  Co.,  Providence,  R.  I.  Gentlemen: 
This  is  a  reply  to  your  letter  of  March  27  relative  to  your  order 
for  blocks.  We  will  complete  loading  one  car  today  and  will 
ship  you  the  second  car  on  your  uncompleted  order  at  as  early 
a  date  as  possible.  We  have  had  considerable  trouble  with  our 
press  during  the  past  week  and  that  has  put  us  behind  with  all 
our  shipments.  We  have  not  intentionally  held  your  order  to 
give  other  business  the  preference,  but  the  delay  has  been  occa- 
sioned by  our  inability  to  make  the  blocks  fast  enough  for  our 
orders.  You  are  aware  of  the  fact  that  this  is  a  very  busy 
season  with  us.  Yours  very  truly, 

Mr.  Wm.  S.  O'Gorman,  Los  Angeles,  California.  Dear  Sir: 
Immediately  after  receiving  your  letter  of  the  5th,  we  looked 
up  the  order  which  you  placed  with  our  agent,  Mr.  Albert 
Lynch,  on  June  18.  We  find  that  the  keg  of  nails  and  the  ham- 
mers called  for  were  shipped  from  our  mill  on  July  28.  They 
should  have  reached  you  long  before  this  time.  We  are  having 
them  traced  from  this  end,  and  suggest  that  you  keep  after  the 
freight  office  at  Dallas.  They  should  have  some  record  of  this. 
If  you  wish  the  order  duplicated,  write  us  immediately.  Yours 
very  truly, 

Mr.  Wm.  H.  Upton  &  Bro.,  Richfield,  Utah.  Gentlemen :  We 
regret  to  inform  you  that  your  claim  for  ^12.17  for  damage  on 
goods  delivered  October  8  has  not  been  allowed.  Our  records 
clearly  indicate  that  the  shipment  left  our  shipping  room  in 
good  condition  and  was  delivered  to  your  shipping  clerk  in  good 
condition.  If  the  shipment  is  damaged,  the  responsibility  does 
not  lie  with  us.  We  trust  that  you  will  be  able  to  place  the 
responsibility  and  that  the  matter  will  be  adjusted  without  loss 
to  you.  If  copies  of  our  records  on  the  shipment  will  help  you, 


1 68  OFFICE   PRACTICE 

kindly  notify  us  and  they  will  be  promptly  forwarded.     Very 
respectfully, 

Mr.  Frank  J.  Arnold,  Pittsburgh,  Pa.  Dear  Sir.  Several  days 
ago  I  had  an  opportunity  of  showing  you  our  office  furniture. 
If  you  have  not  completed  the  purchases  for  your  new  office, 
can't  you  come  in  again  some  day  soon?  We  received  a  few  of 
the  new  desks  and  chairs  yesterday  and  the  others  will  arrive 
in  a  day  or  two.  I  believe  that  these  new  styles  will  appeal  to 
you.  At  any  rate,  I  should  like  to  have  you  see  them  before 
making  your  final  decision.  We  can  furnish  these  styles  in  any 
standard  finish  or  can  make  them  up  to  match  the  furniture 
you  now  have.  If  you  decide  to  get  all  new  furniture,  we  will 
make  you  a  liberal  allowance  on  any  pieces  you  want  to  turn 
in.  Our  guarantee  covers  both  service  and  quality.  Yours 
very  truly, 

The  McGill  Company,  210  Bedford  Street,  Stamford,  Conn. 
Gentlemen:  About  three  years  ago  I  visited  your  plant  and 
saw  there  what  I  took  to  be  the  machinery  of  an  old  Model  A 
Wright  biplane.  As  I  have  one  of  these  machines  that  I  am 
rebuilding  for  exhibition  purposes,  I  should  like  to  know  if 
you  would  be  willing  to  sell  me  this  old  machinery.  I  should 
want  the  two  propeller  shaft  brackets  with  shafts  and  pro- 
pellers, also  chains  and  chain  guide.  I  should  also  like  an 
old-style,  4-cylinder,  25  H.  P.  Wright  engine.  This  outfit 
would  not  have  to  be  in  running  condition  as  it  is  intended  for 
exhibition  purposes  in  a  museum.  If  you  cannot  furnish  me 
with  these  parts,  perhaps  you  can  inform  me  where  I  can 
procure  them. 

I  am  inclosing  a  small  photograph  which  I  took  of  your 
hydroplane  when  I  was  at  your  plant.  You  may  be  able  to 
use  it  for  advertising  purposes.  Very  truly  yours, 


THE   TYPEWRITER  169 

Illustration  of  single  space  indent  letter: 

THE  NATIONAL  CITY  BANK 
NEW   YORK,  N.  Y. 


October  15,  1921 

Mr.  Guy  S.  Fry 

77  Madison  Avenue 

New  York  City,  New  York 


Dear  Si 


We  are  pleased  to  offer  for  your  invest- 
ment, subject"  to  prior  sale  and  advance  in 
price,  the  new  issue  of  Anglo  -French  5$  Five- 
Year  Gold  Bonds  at  98  and  interest,  netting 
close  to 


The  loan  is  definitely  due  and  payable  in  five 
years.   At  your  option,  however,  these  bonds 
may  be  converted  into  a  4^$  obligation  matur- 
ing in  from  fifteen  to  twenty-five  years.   If 
we  may  draw  any  conclusion  from  the  past,  it 
would  seem  that  this  may  become  a  valuable  in- 
vestment privilege. 

The  bond  is  unusual  in  that  the  United 
Kingdom  of  Great  Britain  and  the  Republic  of 
France  are  not  only  jointly  liable  but  each  of 
the  two  nations  is  severally  liable  for  the 
punctual  payment  of  the  entire  loan,  principal 
and  interest. 

We  recommend  these  bonds  for  investment 
and  shall  be  very  glad  to  be  advised  of  your 
wishes  . 

Yours  very  truly, 

THE  NATIONAL  CITY  BANK 

AM/FLJ 

Bond  Department 


i;o  OFFICE   PRACTICE 

Make  a  correct  copy  of  each  exercise,  using  the  model  as  a 
guide  for  arrangement. 

Mr.  Louis  E.  Lawrence,  Annapolis,  Md.  Dear  Sir:  We  are 
sending  you  a  copy  of  our  invoice  of  March  12  for  £93.64  in 
order  that  you  may  have  the  opportunity  to  check  it  up  with 
your  records.  Our  books  indicate  that  this  bill  is  still  unpaid. 
If  there  is  any  error  on  the  invoice,  please  write  us  about  it  at 
once  and  we  will  gladly  make  the  necessary  correction.  Yours 
very  truly, 

Mr.  James  MacDowell,  Detroit,  Mich.  Dear  Sir:  We  sent 
you  today  from  our  Cincinnati  factory  the  merchandise  ordered 
in  your  letter  of  May  10.  We  are  obliged  to  ship  with  a  bill 
of  lading  attached,  inasmuch  as  you  are  not  personally  known 
to  us  or  to  the  trade  in  Cincinnati  or  in  Toledo.  We  shall 
be  pleased  to  receive  references  from  you  and  to  investigate 
them.  If  these  references  are  satisfactory,  we  will  willingly  open 
an  account  with  you.  We  thank  you  for  the  liberal  order  and 
trust  that  this  will  be  the  beginning  of  long  and  prosperous 
business  relations  between  us.  Very  truly  yours, 

The  McGill  Company,  210  Bedford  Street,  Stamford,  Conn. 
Gentlemen:  As  suggested  in  your  letter  of  April  21,  we  are 
writing  your  customer,  the  Automatic  Furniture  Company, 
asking  that  they  furnish  us  with  the  necessary  information 
for  riling  this  claim.  On  receipt  of  their  letter,  you  will 
hear  from  us.  We  have  also  a  voucher  covering  the  over- 
charge on  the  shipment  made  to  the  Atlantic  Coffee  Com- 
pany, for  which  we  thank  you.  Signed  receipts  are  inclosed. 
We  appreciate  the  energetic  manner  in  which  you  are  look- 
ing after  our  interests  in  your  part  of  the  country.  Very 
truly  yours, 

Mr.  Frank  R.  Quinlan,  Bangor,  Maine.  Dear  Sir:  Some 
time  ago  we  placed  in  the  hands  of  the  Second  National  Bank 


THE  TYPEWRITER  171 

of  Denver  for  collection  your  note  due  May  5.  So  far  as  we 
know,  this  note  has  never  been  paid.  Several  days  ago  we  asked 
the  bank  to  give  us  a  report  and  they  informed  us  that  they 
had  never  received  the  proceeds.  So  long  a  time  has  now 
elapsed  that  you  should  see  the  urgency  of  immediate  payment. 
We  do  not  mind  telling  you  that  we  need  the  money  badly  to 
meet  an  emergency  call.  We  shall  certainly  appreciate  it  if  you 
will  give  this  matter  your  special  attention.  Very  respectfully, 

The  Wilson  Sargent  Co.,  Louisville,  Ky.  Gentlemen:  At 
the  suggestion  of  our  agent,  Mr.  James  Grant,  we  are  mailing 
to  you  today,  without  charge,  one  dozen  pairs  of  the  5o-cent 
size  cushion  heels.  You  may  put  these  in  stock  with  what  you 
have  and  clean  out  the  whole  lot  at  25  cents  each.  You  will 
then  be  ready  to  put  in  our  new  25-cent  heel.  The  price  and 
quality  of  this  new  heel  will  certainly  please  your  customers. 
We  sent  a  trial  lot  of  five  dozen  pairs  to  a  large  firm  in  Clinton 
on  Monday,  and  yesterday  afternoon  they  wired  us  for  three 
cases.  Yours  very  truly, 

Mr.  M.  J.  Slater,  El  Paso,  Texas.  Dear  Sir:  The  confidence 
that  you  have  expressed  in  consulting  us  about  your  investments 
is,  we  assure  you,  much  appreciated.  The  Standard  Gas  and 
Electric  Company  six  per  cent  gold  notes  in  denominations  of 
$50  and  $100  furnish  a  satisfactory  investment  for  the  savings 
of  people  of  small  means,  and  we  recommend  them  for  the 
'earnings  of  your  two  children.  We  have  a  large  number  of 
accounts  of  this  nature  on  our  books  and  we  consider  it  desir- 
able business,  as  it  often  grows  into  a  good-sized  investment  in 
the  course  of  a  few  years. 

We  shall  be  glad  to  receive  your  order  for  these  notes,  or  to 
reserve  them  for  you  if  you  are  not  prepared  to  purchase  now. 
Very  respectfully, 


i?2  OFFICE   PRACTICE 

Illustration  of  single  space,  block  inside  address,  block 
signature,  and  block  paragraphs  letter  form.  This  represents 
the  first  page  of  the  letter — it  is  not  complete: 

THE  CURTIS   PUBLISHING  COMPANY 
PHILADELPHIA,    PENN. 

July  20   1916 

Mark  Cross,  Ltd. 
89  Regent  Street 
London,  W. ,  England 

Dear  Sirs: 

Every  day  in  the.  year  the  American  people  con- 
sume more  than  $1,400,000  worth  of  merchandise 
purchased  from  the  United  Kingdom,  Germany, 
France,  Austria,  Hungary,  Belgium,  Sweden, 
Netherlands,  Switzerland  and  Italy. 

The  total  annual  exports  from  these  countries 
to  the  United  States  are  valued  at  more  than 
$500,000,  "but  no  country  in  the  world  has  re- 
cently shown  such  great  changes  in  foreign 
trade  as  has  the  United  States. 

Within  ten  years  international  relations  have 
so  shifted  that,  instead  of  "being  primarily  an 
exporter  of  food,  and  an  importer  of  manufac- 
tures, the  United  States  is  exactly  reversing 
its  position. 

Our  importations  of  one  classification  alone, 
iron  and  steel  manufactured  commodities,  which 
in  1903  were  of  the  money  value  of  $41,000,- 
000,  decreased  in  1913  to  $34,000,000.  Mean- 
while, our  exports  of  manufactured  products 
have  been,  in  their  increase,  one  of  the  most 
striking  of  international  trade  phenomena. 


THE   TYPEWRITER  173 

Make  a  correct  copy  of  each  exercise,  using  the  model  as  a 
guide  for  arrangement. 

R.  H.  Macy  &  Co.,  New  York,  N.  Y.  Gentlemen:  In  making 
up  your  order  we  find  it  impossible  to  supply  you  with  the  exact 
quality  of  serge  that  you  desire.  Rather  than  delay  your  ship- 
ment until  a  fresh  supply  is  received,  we  have  selected  from  our 
stock  another  piece  of  a  little  better  quality  than  the  one  you 
ordered.  This  material  costs  us  more  and  regularly  sells  for 
more,  but,  since  the  fault  in  this  case  is  ours  and  not  yours, 
we  are  not  going  to  charge  you  anything  extra.  If  you  find  on 
examination  that  for  any  reason  you  cannot  use  this  material, 
we  shall  be  glad  to  have  you  return  it  to  us  at  our  expense. 
We  thank  you  for  the  order  and  we  hope  to  have  the  pleasure 
of  hearing  from  you  again  in  the  near  future.  Very  truly  yours, 

Baldwin,  Serchson  &  Co.,  Columbus,  Ohio.  Gentlemen: 
Inclosed  you  will  find  a  letter  that  we  received  from  Edwin 
McKenzie  in  regard  to  the  car  of  white  corn  that  he  shipped 
through  me  on  which  he  got  12  per  cent  discount.  He  shipped 
several  cars  out  of  the  lot  that  graded  No.  5.  As  you  will  note 
from  his  letter,  which  we  inclose,  he  cannot  understand 
why  this  car  did  not  grade  No.  5,  and  he  also  thinks  the  discount 
is  excessive.  Will  you  kindly  write  us  again  in  regard  to  this 
car  so  that  we  can  show  him  the  letter.  If  you  can  do  anything 
in  this  matter,  please  act  promptly.  Mr.  McKenzie  has  been 
a  good  customer  of  ours  for  many  years  and  it  is  important  that 
we  keep  him  satisfied.  Yours  truly, 

Mr.  Joseph  Ziegler,  Akron,  Ohio.  Dear  Sir:  We  acknowledge 
with  pleasure  the  receipt  of  your  request  for  a  copy  of  our  com- 
plete catalog.  We  do  not  issue  a  general  catalog,  for  the  reason 
that  we  are  constantly  bringing  out  improvements;  and  we 
feel  that  our  customers  are  always  entitled  to  the  newest  features 
at  the  time  of  purchase.  Accordingly,  we  are  today  instructing 
our  agent,  Mr.  J.  A.  Stewart,  23  South  Avenue,  Topeka, 


174  OFFICE    PRACTICE 

Kansas,  to  call  on  you  at  his  earliest  convenience.  Mr.  Stewart 
will  be  in  a  position  to  offer  you  some  very  interesting  sug- 
gestions, and  we  are  sure  that  his  visit  with  you  will  be  both 
pleasant  and  profitable.  In  the  meantime,  perhaps  we  can  lend 
assistance  on  some  of  the  general  problems  of  your  business. 
Our  Merchants'  Service  Bureau  is  maintained  for  this  special 
purpose  and  we  invite  you  most  cordially  to  avail  yourself  of 
the  privilege.  We  are  awaiting  with  interest  the  receipt  of 
further  word  from  you — either  direct  or  through  Mr.  Stewart. 
Yours  very  truly, 

American  Printing  Company,  Fall  River,  Mass.  Gentlemen: 
Please  send  to  our  New  Haven  publishing  office  the  following: 
50  Ibs.  28x34,  60  pounds,  white  bond;  500  sheets  Irish  Linen; 
10  reams,  9x14,  Mimeograph,  1000  sheets  in  pkg..  Kindly 
ship  by  N.  Y.,  N.  H.  &  H.,  Adams  Express.  The  above  order 
is  to  be  invoiced,  net  f.o.b.  your  mill,  or  c.i.f. .  terms  3/5,  2/10, 
n/3O  as  per  your  quotation  No.  7894  of  the  9th.  We  note  ship- 
ment will  be  made  in  three  days  from  receipt  of  the  order, 
therefore  we  are  counting  on  you  to  ship  the  above  order  not 
later  than  Wednesday  of  this  week.  Yours  very  truly, 

The  McGill  Company,  210  Bedford  Street,  Stamford,  Conn. 
Gentlemen:  We  are  writing  to  call  your  attention  to  the  fact 
that  your  account  covering  the  invoice  of  February  20  amount- 
ing to  $235  rs  now  due.  The  terms  on  this  invoice  were  4/5, 
2/10,  n/3<D  and  the  merchandise  was  shipped  c.i.f.  If  you 
desire  to  take  advantage  of  the  discount  allowed  by  the  terms 
as  quoted  it  will  be  necessary  for  you  to  send  us  your  check 
by  return  mail.  We  ask  that  you  give  this  matter  your  early 
attention.  Yours  truly, 

How  to  Make  Duplicate  or  Carbon  Copies  of  Invoices,  Bills, 

or  Letters 

Place  a  plain  sheet  of  paper  upon  a  flat  surface,  then  place 
the  carbon  sheet,  with  the  carbonized  surface  downward,  on 


THE  TYPEWRITER  175 

the  top  of  the  plain  sheet,  then  place  the  letter  head  with  the 
printed  side  upward  upon  the  carbon  sheet. 

Have  the  carbon  sheets'  and  letter  sheets  evenly  arranged 
and  insert  in  the  typewriter  with  the  printed  form  farthest 
from  the  cylinder  or  platen.  The  original  letter  must  be  written 
on  the  letter  paper  of  the  firm  and  the  carbon  copy  on  a  blank 
sheet. 

When  making  a  carbon  copy  if  it  is  necessary  to  erase,  insert 
a  piece  of  paper  between  the  carbon  and  the  sheet  of  paper 
from  which  you  wish  to  erase.  Use  a  soft  pencil  eraser  first, 
and  then  use  a  typewriter  eraser.  An  eraser  shield  which  has 
small  openings  which  fit  over  the  letter  or  figure  to  be  erased 
is  convenient  to  use  in  such  case. 

A  carbon  copy  should  always  be  made  of  an  outgoing  letter. 
Extra  copies  may  be  made  if  the  original  copy  is  written  with 
the  naked  type  as  is  done  in  making  a  stencil  for  use  on  a 
mimeograph. 

When  several  copies  are  to  be  made  place  first  a  letter  sheet, 
and  then  a  carbon  sheet,  the  carbonized  surface  facing  the 
platen. 

Assignment: 

1.  Practice  the  arrangement  of  paper  and  carbons.     Practice 
inserting  them  in  the  typewriter.    Depress  the  paper  release 
when  inserting  and  removing  the  sheets.     If  you  want  to 
write  on  ruled  paper  depress  the  paper  release,  and  by  turn- 
ing the  cylinder  slowly  you  can  adjust  the  ruled  line  with 
the   cylinder   scale,   or   pull  out   the   cylinder  knob,   thus 
releasing  the  cylinder. 

After  the  student  thoroughly  understands  the  method  of 
putting  in  and  removing  the  sheets,  write  a  copy  of  one 
of  the  form  letters  in  the  typewriting  section  of  the  text. 

2.  Make  carbon  copies  of  all  the  letters  sent  out  today  by  our 
correspondence  department. 

3.  After  the  original  copy  has  been  sent  to  the  outgoing  mail 


1 76  OFFICE   PRACTICE 

department,  arrange  the  carbon  copies  for  riling.    Underline 
the  file  name  with  red  pencil. 

4.  File  the  first  ten  letters  alphabetically. 

5.  File  the  second  ten  letters  geographically. 

6.  File  the  third  ten  letters  according  to  the  subject  of  the 
letter. 

The    Mimeograph 

In  ancient  times  the  Romans  carried  with  them  tablets  made 
of  wood  or  iron  covered  with  wax  on  which  they  wrote  with  a 
sharp  iron  instrument  called  the  stylus. 

Before  the  advent  of  the  typewriter,  the  stylus  was  also  used 
as  a  method  of  duplicating  handwriting,  which  was  then,  and 
is  now,  known  as  the  mimeograph. 

How  to  Typewrite  a  Wax  Stencil 

See  that  the  type  faces  on  the  typewriter  are  thoroughly 
cleaned  and  that  the  ribbon  is  disengaged.  Most  of  the  type- 
writing machines  of  the  present  day  have  a  device  that  auto- 
matically disengages  the  ribbon.  In  using  the  wax  sheet,  it  is 
not  necessary  to  use  the  silk  sheet,  unless  the  typewriter  is  in 
poor  condition.  In  that  event  remove  the  porous  sheet  fur- 
nished with  each  composite  stencil  and  substitute  the  silk  sheet. 

The  Dermatype  Stencil 

The  Dermatype  stencil  must  be  softened  while  in  the  process 
of  writing.  To  accomplish  this,  it  is  necessary  to  use  a  fluid 
which  is  known  as  Dermax.  A  handy  roller  is  used  to  roll  the 
stencil  before  moistening  the  backing.  This  roller  is  on  the 
order  of  a  mailing  tube.  It  is  well  to  spread  a  sheet  of  news- 
paper or  blotter  on  the  table  while  moistening  the  backing  sheet 
so  that  the  excess  moisture  that  squeezes  out  in  rolling  down 
the  stencil  will  absorb  into  the  blotter  or  the  newspaper.  The 
stencil  must  be  moist  while  writing.  It  will  not  show  any  impres- 


THE   TYPEWRITER 


177 


sion  while  it  is  dry  or  in  the  process  of  drying.  In  the  event  that 
the  copy  to  be  written  is  too  lengthy  to  hold  the  moisture  long 
enough  (which  under  ordinary  conditions  should  last  from 
thirty  to  forty-five  minutes  depending,  of  course,  on  climatic 
conditions;  you  must  figure  that  if  you  are  writing  this  stencil 
near  a  steam  radiator  or  an  open  window,  it  is  likely  to  dry),  it 
is  well  to  finish  a 
paragraph  and  take 
the  stencil  out  of 
the  typewriter  and 
moisten  it  on  the 
outside.  Do  not 
disturb  the  Derma- 
type  stencil  once 
you  have  rolled  it 
on  the  backing. 
Not  that  it  will 
harm  it,  but  there 
is  no  necessity  for 
doing  so.  Before  in- 
serting it  into  the 

typewriter  again,  blot  off  the  excess  moisture.      By  no  means 
should  it  be  placed  in  the  typewriter  when  wet. 

By  having  the  type  on  the  typewriter  thoroughly  cleaned  the 
impression  will  show  clearly  on  the  stencil  while  writing  it,  and 
will  act  as  a  guide  as  to  whether  the  stencil  is  being  cut  clearly. 
Make  certain  that  your  ribbon  is  disengaged  and  that  you  are 
writing  with  the  bare  type,  as  a  stencil  cannot  be  cut  through  a 
ribbon. 

In  removing  the  stencil  from  the  typewriter,  use  a  sheet  of 
paper  about  the  size  of  a  letterhead,  divide  it  in  half  and  bind 
the  end  of  the  stencil  as  you  are  taking  it  out  of  the  typewriter, 
so  that  if  any  excess  moisture  squeezes  out  of  the  end,  it  will 
absorb  in  the  paper.  An  envelope  may  also  be  used  for  this 
purpose. 


THE    MIMEOGRAPH 


1 78  OFFICE   PRACTICE 

Directions  for  Cleaning  and    Filing    Dermatype    Stencil   for 

Future  Use 

Blot  it  several  times  between  sheets  of  newspaper  to  make 
sure  that  no  ink  is  left  in  the  perforations  as  the  ink  is  apt  to 
harden,  and  when  brought  out  for  use  again  it  will  not  give  a 
perfect*  impression.  Determine  this  by  holding  it  up  to  the 
light  and  see  that  the  perforations  are  clear.  Place  your  stencil 
between  two  sheets  of  paper  and  fold  as  you  would  for  legal 
size  envelope.  Insert  it  in  an  envelope  and  file. 

Typists  who  use  the  touch  system  should  be  very  careful 
that  they  strike  the  end  letters  of  the  keyboard  as  uniformly 
as  the  others,  as  the  small  fingers  are  not  as  strong  as  the 
others.  The  ideal  touch  on  a  typewriter  for  stencil  cutting 
is  known  as  the  staccato  blow.  It  does  not  matter  so  much 
how  hard  one  strikes  a  key;  all  depends  on  how  quickly  he 
gets  his  finger  away  from  it. 

A  good  method  of  filing  is  to  use  the  subject  matter  of  the 
stencil  as  a  title  and  give  the  stencil  a  number.  Write  this  data 
on  cards  (3//x5//)  alphabetically,  arranging  the  subject  matter 
and  number.  File  the  stencils  numerically.  When  looking 
through  the  cards  for  a  stencil,  refer  to  the  subject  matter. 
The  card  will  show  the  number  of  the  stencil  and  in  this  way 
it  takes  only  a  few  moments  to  find  it. 

The  Use  of  the  Mimeograph  Machine 

The  Rotary  Mimeograph  machine  has  a  metal  cylinder  with 
a  perforated  diaphragm.  This  cylinder  connects  with  a  rubber 
roller  underneath,  between  which  the  paper  passes  and  forms 
the  impression.  The  ink  is  fed  through  this  perforated  dia- 
phragm from  the  inside  of  the  cylinder  and  absorbs  on  a  cloth 
pad  which  is  attached  to  the  diaphragm. 

This  cloth  pad  should  be  changed  at  frequent  intervals.  The 
more  work  that  is  done  on  "the  machine  the  less  often  the  ink 


THE  TYPEWRITER 


179 


PREPARING   THE    STENCIL 


pad  would  have  to  be  changed  on  account  of  a  fresh  supply 
passing  through  this  cloth  and  keeping  it  in  good  condition. 

On  the  improved  rotary  machines  the  rubber  impression 
roller  automatically  releases  itself  from  the  cylinder  and  will 
only  engage  when  the  paper 
is  passing  through.  On  the 
older  type  machines  a  lever 
is  used  to  engage  the  roller 
with  the  cylinder,  and  if  by 
error  the  cylinder  is  rotated 
while  no  paper  is  passing 
through,  an  offset  will  appear 
on  the  impression  roller,  the 
result  of  which  is  that  it  re- 
quires the  roller  to  be  cleaned 
and  a  number  of  sheets  fed 

through  the  machine  until  these  shadow  impressions  are  removed. 

After  the  stencil  is  written  the  backing  is  removed  by  tearing 

it  at  the  perforations.     All  that  remains  of  the  stencil  is  the 

button -hole  strip  and  the 
stencil  itself.  The  stencil  is 
placed  on  the  cylinder  face 
down  and  clamped. 

In  event  that  a  wax  sheet 
is  used,  before  putting  it  on 
the  mimeograph,  the  top 
tissue  and  the  porous  sheet 
between  the  stencil  and  the 
backing  is  removed,  and  the 
stencil  is  put  on  the  cylinder 
with  the  backing  strip  at- 
tached until  the  stencil  is  in  proper  position.  The  reason  for 
this  is  that  the  wax  is  very  sensitive  and  requires  protection 
until  it  is  properly  clamped  on  the  machine,  and  then  the 
backing  is  torn  away  at  the  perforations. 


PLACING    THE    STENCIL    ON 
MIMEOGRAPH.      NO.  I 


THE 


i8o 


OFFICE    PRACTICE 


PLACING   THE    STENCIL    ON   THE 
MIMEOGRAPH.      NO.  2 


The  old-style  machines  had  a  counting  device,  known  as 
the  cyclometer,  which  counts  at  each  revolution  of  the 
cylinder.  This  is  improved  on  the  late  machines  by  a  new 

recording  device  which  will 
not  count  unless  the  copy  is 
actually  printed.  It  is 
called  a  print  recorder. 

Hand  feeding  is  best  ac- 
complished by  combing  the 
paper  so  that  a  single  sheet 
can  be  picked  up  with  ease. 
By  pressing  the  thumb  on 
the  top  of  the  paper  and 
using  the  forefinger  to  pick 
up  each  sheet  separately, 

greater  speed  can  be  accomplished  as  soon  as  you  become 
accustomed  to  the  feed  of  the  paper.  The  paper  is  then 
placed  to  the  guide  stops.  This  is  as  far  as  it  will  go  and  the 
handle  revolves  until  the  copy  drops  into  the  receiving  tray. 

Assignment: 

Prepare  a  dermatype  sheet  and  cut  a  stencil  on  the  typewriter. 
For  copy,  use  the  sales  letter  advertising  sanitary  drinking 
cups  to  the  trade.  After  the  stencil  is  cut,  send  it  to  the  mimeo- 
graph department  with  instructions  to  have  100  mimeograph 
copies  run  off  for  the  outgoing  mail  department. 

Examination  questions,  home  work  assignments,  duplicate 
copies  of  school  programs,  and  desired  information  for  distri- 
bution throughout  the  school  may  be  assigned  to  the  students 
in  their  office-practice-class  recitation  periods.  A  member  of 
the  office-practice  class  should  be  assigned  to  cut  the  stencil 
during  the  recitation  period  and  to  run  off  copies  on  the  mime- 
ograph. Several  such  assignments  should  be  given  on  this 
work. 


THE  TYPEWRITER  181 

Sales  Letter  Advertising  Sanitary  Drinking  Cups 

The  company  wishes  to  send  out  a  sales  letter  concerning  a 
new  department,  that  of  advertising  sanitary  drinking  cups  to 
the  trade.  A  sales  letter  is  "salesmanship  on  paper."  It  must 
give  a  buying  impression,  and  must  interest  the  reader  in  the 
article  we  wish  to  advertise  or  sell.  It  must  describe  the  dis- 
tinctive qualities  of  the  article  so  that  the  prospective  customer 
will  feel  a  need  for  same  after  reading  our  letter.  A  sales  letter 
is  usually  printed  in  typewriter  type  and  the  inside  address  is 
typewritten,  the  ribbon  used  matching  in  color  the  ink  used  in 
the  printing.  If  the  printer  uses  small  pica  typewriter  type  in 
printing  the  letter,  a  typewriter  having  small  type  must  be 
used  for  rilling  in  the  inside  address.  Unless  a  letter  appears 
to  be  a  personal  one  and  has  an  individual  appeal  to  the  person 
to  whom  the  letter  is  addressed,  it  generally  finds  its  way  into 
the  waste-paper  basket  in  a  busy  office. 

Assignment: 

1.  Using   the   Classified   Telephone    Directory   of  your   city, 
make  an  alphabetical  list  of  the  names,  addresses,  and  the 
telephone    numbers    of    the    following    business    concerns. 
Leave  the  list  on  the  desk  of  the  chief  clerk: 

Ten  physicians,  lawyers,  brokers,  publishing  and  advertising 
concerns,  dentists,  accountants,  retail  dry  goods  concerns, 
and  millinery  establishments. 

2.  Write  a  letter,  omitting  the  inside  address,  in  single  space, 
block  form,  using  the  following  data: 

The  McGill  Company,  210  Bedford  Street,  Stamford,  Conn., 
desires  to  advertise  Sanitary  Drinking  Cups.  Telephone 
Stamford  1146.  Sign  your  name  in  ink  as  manager  of  the 
company.  The  following  information  may  assist  you: 

It  is  now  known  that  the  "common  drinking  glass"  is  the 
greatest  germ  carrier  in  public  life.  In  fact,  there  is  a  rigid 


i82  OFFICE   PRACTICE 

law  that  forbids  its  public  use,  and  the  penalty  is  imprison- 
jment  and  a  fine  of  $250.  Both  the  criminal  law  and  the 
moral  law  demand  that  you  use  clean,  sanitary,  individual 
cups  in  your  office  and  factory.  Do  not  risk  arrest  and  a 
fine  by  continuing  the  use  of  the  "condemned  public  glass." 

Give  your  customers  and  employees  clean  water  in  clean 
cups.  Your  customers  do  not  like  to  endanger  their  health 
by  drinking  from  a  germ-breeding  glass  that  has  been  used 
by  everyone. 

You  cannot  afford  to  permit  one  employee  to  endanger  the 
health  and  lives  of  all  your  employees  by  spreading  colds, 
influenza,  and  such  diseases  by  using  the  "condemned  glass." 
Do  not  weaken  the  efficiency  of  your  organization — especially 
these  busy  days. 

3.  Send  the  letter  to  the  mimeograph  department  and  have 
a  typist  cut  a  dermatype  stencil  and  run  off  100  copies 
on  the  mimeograph.  The  mimeograph  department  is  to 
send  the  mimeographed  letters  to  the  typewriting  depart- 
ment. This  department  is  to  type  the  inside  address  on 
each  letter,  using  the  list  approved  by  the  chief  clerk, 
and  address  an  envelope  or  send  a  sufficient  number  of 
window  envelopes  with  the  letters  to  the  outgoing  mail 
department  where  the  letters  are  to  be  folded  properly 
and  enclosed  in  envelopes  and  stamped. 


CHAPTER  EIGHT 
INDEXING  AND  FILING 

THE  business  man  in  the  days  of  the  old-style  roll-top  desk, 
with  its  many  cubby-holes,  which  were  always  filled  with  every 
kind  of  business  memoranda  and  correspondence,  began  to 
realize  that  some  sort  of  classification  of  commercial  papers 
and  correspondence  should  be  used. 

He  usually  had  a  straight  or  bent  wire  spindle  with  a  point 
on  which  memoranda  was  pressed  down,  the  sharp  point 
piercing  the  papers  and  holding  them.  These  papers  usually 
were  memoranda  with  no  idea  of  classification,  and  were  to  be 
attended  to  either  that  day  or  the  following  business  days.  The 
office  boy  copied  all  the  outgoing  mail,  and  the  invoices  or 
bills  to  be  sent  to  the  creditors  of  the  company,  in  an  old- 
fashioned  letterpress  book.  This  was  a  very  slow  process,  and 
necessitated  the  use  of  a  bound  letterpress  book  consisting  of 
tissue  sheets  and  an  alphabetic  index.  To  copy  the  letter  or 
invoice  on  the  tissue  sheet  of  this  book  it  was  necessary  for  the 
office  boy  to  moisten  a  sheet  of  the  tissue,  place  the  letter  or 
invoice  to  be  copied  on  the  top  of  this  moistened  sheet,  place 
an  oiled  board  on  either  side  of  the  moistened  sheet  to  protect 
the  dry  tissue  of  the  book,  close  the  book  and  place  it  under 
pressure  in  a  letterpress  operated  by  hand. 

When  it  was  necessary  to  refer  to  any  correspondence  in 
one  of  the  cubby-holes  of  a  roll-top  desk  the  business  man 
had  to  hunt  through  all  the  letters  and  memoranda  to  find 
the  desired  letter  or  invoice,  so  also  with  this  letterpress 
book;  the  correspondence  or  invoice  to  or  from  an  individual 
or  company  could  not  be  in  one  section  of  the  letterpress 

183 


1 84 


OFFICE   PRACTICE 


book.  In  looking  up  a  letter  it  was  often  necessary  to  search 
through  many  letterpress  books.  The  only  advantage  of  this 
system  was  that  a  copy  was  an  exact  duplicate  of  the  original 
for  the  copy  of  a  letter  was  never  made  until  the  letter  was 


CORNER   OF   A    FILING   DEPARTMENT 

signed,  the  signature  always  appearing  on   the   copied   tissue 
sheet. 

With  the  general  use  of  the  typewriter  and  the  facility  of 
producing  carbon  copies  of  letters  at  the  same  time  as  the 
original,  the  taking  of  letterpress  copies  has  been  discarded  in 
favor  of  the  carbon  copies.  The  only  important  use  for  a  letter- 
press book  nowadays  is  for  making  an  exact  copy  of  all  gov- 
ernment documents.  The  letters  and  legal  records  sent  out 
by  government  officials  in  certain  departments  have  to  be  copied 


INDEXING  AND   FILING  185 

exactly  and  with  the  signature  of  the  official  who  signed  them. 
Carbon  copies  are  made  on  the  typewriter  while  the  original  is 
being  typed.  The  carbon  copies  are  filed  while  a  letterpress  copy 
is  made  of  the  original  after  it  has  been  signed.  The  copy  in 
the  bound  letterpress  book  is  always  used  if  any  legal  adjust- 
ment has  to  be  made  later. 

Before  the  days  of  the  loose-leaf  system  of  bookkeeping  in 
the  accounting  department  there  was  no  danger  of  the  com- 
mercial papers  being  lost  as  they  were  copied  in  bound  books. 
As  business  progressed  and  modern  office  appliances  became 
part  of  every  concern,  the  impression  seemed  to  be  that  a 
system  of  filing  of  business  records  should  become  a  part  of  the 
efficiency  idea  in  business,  and  naturally  the  development  of  a 
proper  filing  and  record-keeping  system  was  the  result.  Filing 
has  developed  until  today  it  ranks  on  the  same  basis  as  the 
accounting  and  the  stenographic  departments. 

The  watchword  in  all  systems  of  filing  is  carefulness,  as  the 
efficiency  of  every  filing  system  depends  upon  the  ability  to 
find  the  papers  at  a  moment's  notice. 

Indexing 

The  essential  feature  of  any  filing  system  is  the  indexing, 
which  means  the  separation  of  the  office  records  into  groups  for 
reference  purposes.  The  initial  step  in  developing  systems  of 
indexing  for  filing  was  the  compiling  of  a  list  of  business  names 
from  all  parts  of  the  United  States,  each  name  being  written 
on  a  separate  slip.  The  slips  were  assorted  in  alphabetical 
order  and  tabulated  to  show  the  number  of  times  each  name 
occurred.  The  tabulated  result  showed  that  the  number  of 
names  under  the  various  letters  of  the  alphabet  varies  very 
greatly,  the  X  having  the  least,  and  the  letter  S  the  greatest 
number  of  names.  Letters  filed  in  an  ordinary  A,  B,  C,  index 
according  to  this  would  be  very  unevenly  distributed,  the  letters 
E,  I,  J,  0,  Q,  U,  V,  Y,  and  Z  would  be  few,  while  B,  C,  H,  M,  S 


1 86  OFFICE   PRACTICE 

would  run  very  high;  therefore  a  scientific  subdivided  alpha- 
betic system  is  often  used  in  filing. 

The  plain  or  simple  alphabetic  index  used  in  filing  consists 
of  a  set  of  twenty-five  guide  cards,  one  card  being  used  for 
each  letter  of  the  alphabet,  excepting  Y  and  Z.  As  a  business 
having  a  large  correspondence  needs  more  careful  subdivisions 
of  the  alphabet  in  order  to  distribute  the  contents  of  the  files 
more  evenly,  the  scientific  subdivision  came  into  use  and  was 
known  as  the  subdivided  alphabetic.  It  consisted  of  a  40,  80, 
1 20,  200,  or  more  divisions  of  the  alphabet.  To  illustrate: 
All  names  beginning  with  Aa  are  filed  in  a  folder  back  of  a 
guide  card  marked  Aa;  Ab  follows,  then  Ac,  Ad,  Ae,  Ai,  Ak, 
Ala,  Alb,  Alk,  All,  Aim,  Alz,  etc.,  throughout  all  the  letters 
of  the  alphabet. 

The  first  index  in  printed  bound  books  was  in  the  old- 
fashioned  ledger  and  the  letterpress  books.  This  system  of 
indexing  consisted  of  several  ruled  sheets  with  cut  pages  or 
projecting  tabs  on  which  were  printed  the  divisions  of  the 
alphabet.  Every  office  record  must  be  indexed  in  such  a 
way  as  to  be  immediately  accessible  when  desired  by  any 
member  of  the  office  force. 

Alphabetizing 

Alphabetizing  is  necessary  in  all  systems  of  filing  used  by 
business  houses.  To  alphabetize  means  to  arrange  words  alpha- 
betically as,  A,  B,  C,  D,  E,  etc.  Strict  alphabetic  order  means 
that  Aa  must  precede  Ab,  and  Ab  must  precede  Ac,  and  so  on 
through  all  the  letter  combinations  as  in  the  following: 

Aaron,  Abraham,  Acker,  Adams. 

Aaron,  Alfred — Aaron,  Henry — Abraham,  John — Abraham, 
Samuel— Acker,  Mary — Acker,  Rose— Adams,  George— Adams, 
James. 

To  arrange  names  according  to  the  dictionary,  where  it  is 


INDEXING  AND  FILING  187 

necessary  to  carry  out  the  alphabetizing  to  the  last  letter  in 
the  word,  it  is  best  to  do  this  to  each  word: 


This  method  immediately  shows  that  the  name  Smithfield 
should  precede  the  name  Smithson. 

The  directory  arrangement  applies  to  the  names  of  persons, 
firms,  corporations,  or  institutions.  The  surname  always  pre- 
cedes the  first  or  given  name.  For  example: 

Lawrence,  Louis  E.  Wilson,  Arthur 

MacDowell,  James  F.  Givens,  Amos  (Dr.) 

When  the  first  name  begins  with  "The"  the  article  follows  in 
parentheses,  as:  Holt,  Henry  Co.  (The). 

When  the  firms  are  incorporated  and  use  the  abbreviation 
"Inc."  as  part  of  the  name,  the  letters  follow  in  parentheses, 
as:  O'Neill  Land  Co.  (Inc.) 

Names  beginning  with  Me  always  precede  names  beginning 
with  M,  while  names  beginning  with  Mac  follow  the  strict  alpha- 
betical order  of  the  names  beginning  with  M,  as  in  the  town  or 
city  directory.  The  telephone  directory  follows  the  strict  alpha- 
betical order,  the  Mc's  being  classified  the  same  as  the  names 
beginning  with  Mac. 

Surnames  spelled  as  two  words,  as:  Du  Pont,  Charles  are 
considered  as  one  name  and  are  alphabetized  under  the  letter  D. 

Abbreviated  words  are  considered  as  if  spelled  out,  as:  Wm., 
William—  St.,  Saint. 

Disregard  the  words  and,  for,  of,  and  the  ampersand  —  £ff. 

Charles  Henderson  &  Co.  should  be  written  as  Henderson, 
Charles  &  Co. 

State  and  city  departments  should  be  alphabetized  under 
the  name  of  the  city  and  state.  For  example:  The  State  of 
Connecticut  should  be  alphabetized  as  Connecticut,  State  of. 

Federal  departments  should  be  placed  under  the  "U.  S." 
and  "Dept.  of."  For  example:  U.  S.  Dept.  of  Interior  should 
be  alphabetized  as  U.  S.  Interior,  Dept.  of. 


i88  OFFICE   PRACTICE 

Words  in  any  form  of  dictionary  or  directory  arrangement 
are  alphabetically  arranged.  In  the  dictionary  the  words  are 
arranged  alphabetically,  while  in  a  table  of  contents  the  sub- 
jects or  topics  are  arranged  alphabetically.  In  large  type  at  the 
top  of  each  page  is  given  the  first  and  the  last  word  which 
is  printed  on  a  page  of  a  dictionary,  and  the  first  and  the  last 
name  on  a  page  of  a  directory. 

In  order  to  arrange  for  alphabetizing,  the  material  should  be 
systematized  before  you  begin  the  work.  The  following  ar- 
rangement is  suggested: 

Crease  a  sheet  of  paper  and  write  the  different  letters  of 
the  alphabet  in  the  squares,  as: 


A 

B 

C 

D 

E 

F 

G 

H 

Write  all  the  names  or  words  beginning  with  each  letter 
in  the  square  assigned  to  that  letter,  and  then  mark  each  name 
with  the  numbers  i,  2,  3,  4,  5,  etc.,  as  applied  in  the  strict 
alphabetical  arrangement. 

If  slips  of  paper  or  cards  are  to  be  arranged  in  strict  alpha- 
betical order,  or  are  to  be  alphabetized,  arrange  in  packs 
according  to  the  first  letter  having  Aa  precede  Ab,  then  Ac, 
followed  by  Ad,  etc. 

The  following  names  are  arranged  in  strict  alphabetical 
order  in  the  second  column,  and  according  to  the  directory 
arrangement. 

George  W.  Anderson  Anderson,  George  W. 

William  Andrews  &  Sons  Andrews,  Wm.   &  Sons 

The  F.  A.  Ferris  Co.  Ferris,   F.  A.   Co.   (The) 

M.  A.  Harris  &  Bro.  Harris,  M.  A.  &  Bro. 


INDEXING  AND   FILING  189 

James  Lawrence  &  Co.  Lawrence,  James  &  Co. 

Martin  McNeill  McNeill,  Martin 

Henry  Marron  &  Son  Marron,  Henry  &  Son 

William  Mac  Devitt  Mac  Devitt,  William 

Waterbury  Watch  Co.  Waterbury  Watch  Co. 

Assignment  on  Alphabetizing: 

1.  Using  the  above  model,  arrange  the  names  of  the  customers 
and   the   creditors  of  The   McGill   Company  (in  Chapter 
Ten)  in    strict    alphabetic   order,  or   as  this  list   of  names 
would  be  arranged  if  the  names  were  used  for  filing    pur- 
poses in  the  filing  department. 

2.  Obtain  from  the  tax  collector  of  your  town  or  city  a  list 
of  the  taxable  real  estate  on  the  assessment  list  in  your 
town  or  city.     Alphabetize  the  list  of  property  owners  on 
each  street.    Alphabetize  the  list  of  streets.    Alphabetize  the 
list  of  property  owners  in  the  city  or  town.     Begin  with 
the  names   beginning  with  Aa,  Ab,  Ac,   etc.     Give  each 
name  a  number,  assigning  number  i  to  the  name  beginning 
with  Aa.     When  this  list  is  complete  it  will  be  a  duplicate 
of  the  list  the  tax  collector  of  the  town  uses  in  his  office 
when  he  collects  the  taxes.     Each  tax  bill  is  numbered  Aa 
having  number  i  as  on  the  list.     When  a  property  owner 
pays  his  tax  bill  the  collector  simply  turns  to  the  number, 
say  3093,  when  the  person  having  that  number  pays  his 
tax  bill.     The  bookkeeping  is  done  in  this  book  as  it  con- 
tains the  number  of  each   property  owner's  tax  bill,  the 
property  owner's   name,   his   address,   the   amount  of  tax 
due,  and  the  date  of  payment  of  the  tax. 

3.  Obtain  the  package  of  student  registration  cards  from  your 
teacher  and  alphabetize  the  total  registration  of  the  student 
body  of  your  school. 

4.  The  names  of  subscribers  from  your.local  telephone  direc- 
tory and  the  names  of  residents  from  your  town  or  city 


190  OFFICE    PRACTICE 

directory  may  be  written  on  small  3"  x  5"  cards  and  may 
be  alphabetized. 

5.  List  of  words  from  the  dictionary  may  be  written  on  small 
slips  and  alphabetized. 

6.  The  list  of  books    assigned  for  supplementary  reading  in 
English  may  be  alphabetized. 

7.  Alphabetize   all   the   names   of  the   largest   cities   and   the 
capital  city  of  each  state  in  the  United  States. 

Filing 

The  centralization  of  modern  business  with  its  division  into 
departments  has  resulted  in  a  vast  number  of  commercial 
papers,  and  the  necessity  for  frequent  reference  to  such  papers 
by  the  different  members  of  each  department  This  has 
created  the  need  for  efficient  filing  methods.  Vertical  filing  is 
the  recognized  system  for  all  papers  in  all  modern  business 
concerns  because  of  its  simplicity  and  the  speed  with  which 
any  letter,  invoice,  voucher,  or  other  paper  may  be  found 
when  wanted.  The  next  point  to  be  considered  was  the 
economy  of  time  in  getting  the  papers  into  the  files  or  the  time 
necessary  to  be  spent  in  filing.  The  four  methods  of  filing  are: 

1.  The  Direct  Alphabetic  system,  in  which  all  records  are  filed 
by  name  or  subject  in   strict   alphabetic   arrangement.     This 
system  is  applicable  to  small  files  or  to  those  of  any  size  where 
it  is  essential  to  keep  one  surname  or  subject  together. 

2.  The  Numeric  system,  in  which  the  records  are  filed  by  con- 
secutive  numbers    assigned   to   the   names   or   subjects.     This 
system  necessitates  the  use  of  an  alphabetic  card  index  or  chart. 

3.  The  Automatic,  which  is  a  combination  of  the  alphabetic 
and  the  numeric  system,  in  which  the  records  are  filed  alpha- 
betically by  name  or  subject  and  safeguarded   by  a  numeric 
check.     This  system  gives  perfect  distribution  of  the  records 
between  the  guides  and  combines  the  speed  and  the  simplicity 
of  the  alphabetic  method  with  the  accuracy  of  the  numeric. 


L.    B.   DIRECT    ALPHABETIC    INDEX 


191 


192  OFFICE   PRACTICE 

4.  The  Geographic  system,  in  which  the  records  are  filed 
behind  state  and  town  or  city  guides,  is  a  system  for  use  in 
filing  where  the  location  of  a  place  is  of  more  importance  than 
the  name  of  the  correspondent. 

Alphabetic  Filing 

The  alphabetic  method  is  particularly  adapted  to  files  when 
the  number  of  correspondents  is  small  but  the  volume  of 
material  is  heavy,  or  where  it  is  essential  to  bring  together  all 
the  correspondence  with  different  persons  of  the  same  surname. 
The  equipment  for  filing  consists  of  pressboard  guide  cards 
for  the  alphabetic  divisions  and  manilla  folders  for  the  regular 
correspondence  of  the  concern. 

The  miscellaneous  folders  are  intended  to  hold  both  corre- 
spondence of  a  strictly  miscellaneous  nature  and  the  letters  of 
an  active  correspondent  until  an  individual  folder  is  desirable. 
A  miscellaneous  folder  is  used  for  each  alphabetic  guide  card, 
the  lettering  or  division  of  the  alphabet  on  the  regular  and 
miscellaneous  folders  being  identical  with  that  on  the  guide 
card.  The  printing  is  generally  in  red  or  black,  thereby  making 
the  folder  easily  distinguishable  from  the  guide  cards.  The 
miscellaneous  folders  may  be  of  a  different  color  from  the 
regular  folders  for  the  sake  of  contrast  when  used  in -the  filing 
drawer  of  the  filing  cabinet. 

In  filing  a  letter  alphabetically,  the  proper  alphabetic  guide 
card  must  be  located  first.  For  example:  A  letter  from  Bennett 
&  Company  is  to  be  filed.  The  guide  card  "Be"  must  first  be 
found;  the  next  question  is  whether  an  individual  folder  has 
been  assigned  to  Bennett  &  Company?  To  answer  this  the 
proper  location  for  a  Bennett  &  Company  folder  in  the  "Be" 
section  must  be  noted  to  see  if  such  a  folder  is  there.  If  there 
is  none,  the  letter  is  then  placed  in  the  miscellaneous  folder 
marked  "Be,"  in  correct  alphabetic  order  with  other  letters 
in  that  folder. 


/~5oo~\ 


Oiitguides  for  charging  eorrespon<Jence 
Removed  from  the  fiffi* 


NUMERIC    CORRESPONDENCE    FILE 


193 


i94  OFFICE   PRACTICE 

Numeric  Filing 

The  numeric  system  is  an  indirect  one,  necessitating  an 
alphabetic  card  index  for  filing  and  reference;  for  this  reason  its 
use  for  name  filing  has  been  discontinued,  the  alphabetic  being 
more  effective  and  far  simpler  and  more  rapid  in  operation. 
The  numeric  usually  proves  the  most  suitable  method  for  per- 
manent records  and  is  desired  where  a  large  amount  of  cross 
reference  is  needed  as  in  legal,  architects'  and  engineers'  files. 
The  necessity  for  consulting  the  alphabetic  card  index  is  an  aid 
to  accurate  filing.  The  numbering  of  the  letters  before  distri- 
bution for  filing  is  a  time  saver. 

The  card  index  of  a  numeric  file  system  furnishes  a  com- 
plete reference  of  the  list  of  names,  addresses,  and  the  geo- 
graphic locations  of  all  the  persons  or  firms  with  whom  busi- 
ness is  transacted.  A  card  is  made  out  for  each  correspondent 
or  the  subject  of  the  correspondence  is  used  in  making  out  the 
cross-reference  card  and  the  card  bears  the  name,  the  address, 
the  kind  of  business,  and  the  file  number  assigned  to  each  firm 
or  person.  These  cards  are  filed  alphabetically  upon  the  re- 
ceipt of  correspondence. 

Reference  is  made  to  this  card  index  and  the  file  number  is 
entered  in  the  upper  right-hand  corner  of  the  letter  before  dis- 
tribution in  the  filing  department.  Previous  correspondence 
may  be  instantly  obtained  from  the  files  by  using  the  file 
number  as  all  the  letters  are  filed  numerically  or  according  to 
the  file  number. 

Geographic  Filing 

Where  exact  territorial  divisions  are  important,  geographic 
filing  provides  a  means  of  grouping  correspondents  from  each 
town  or  city  by  itself.  Credit  information  based  on  territorial 
divisions  either  by  state  or  salesmen's  or  agents'  territories  is 
filed  geographically.  The  towns  and  cities  of  a  state  are  printed 
on  the  guide  cards  and  the  towns  and  cities  are  alphabetically 


GEOGRAPHIC    AND   TOWN    FILING 


195 


196  OFFICE   PRACTICE 

arranged  behind  the  guide  card  bearing  the  name  of  the  state 
in  which  those  towns  or  cities  are  located.  This  system  is 
sometimes  used  in  a  manufacturing  concern  with  direct  retail 
connections  throughout  the  United  States,  or  in  any  particular 
state. 

Subject  or  Occupational  Filing 

The  subject  matter  in  some  correspondence  is  often  of 
greater  importance  than  the  name  of  the  correspondent.  In 
such  a  case  a  subject  system  of  filing  may  be  used  to  advantage. 
The  geographic  system  is  used  in  credit  filing,  as  it  brings  to- 
gether all  the  information  regarding  all  the  accounts  in  one 
town  or  city,  and  it  is  often  of  assistance  in  deciding  individual 
credit  action.  The  town  or  city  guide  card  may  show  the 
population,  the  chief  industries,  the  names  of  the  banks,  and 
the  authorities  from  whom  credit  information  may  be  obtained 
in  that  town.  This  system  may  also  be  used  for  sales  orders 
as  a  salesman  may  quickly  examine  the  orders  received  by 
mail  while  he  was  en  route,  and  he  may  plan  his  next  trip 
through  that  geographic  section  or  district. 

The  advantage  of  a  card  signature  record  in  banks  over  the 
old  system  of  the  signature  book  is  now  recognized.  The  card 
signature  record  contains  only  the  depositors  of  the  bank. 
New  cards  may  be  inserted  alphabetically  and  the  cards  of  ex- 
depositors  may  be  removed  without  disturbing  the  rest  of  the 
cards.  A  card  system  has  the  advantage  of  a  privacy  not 
possessed  by  a  signature  book,  since  the  depositor  in  signing 
cannot  see  the  other  signatures.  A  signature  book  is  cumber- 
some to  handle  at  the  bank  window,  whereas  a  card  may  even 
be  mailed  for  the  signature  of  any  prospective  depositor  who 
cannot  come  to  the  bank  to  open  an  account  with  the  bank. 

The  Shannon  File 

This  is  the  best  known  system  of  flat  filing.  It  consists  of 
a  board  on  which  is  mounted  a  double  arch  at  one  end.  This 


INDEXING  AND   FILING 


197 


arch  is  opened  and  turned  backward.  The  invoice,  sales  slip, 
or  paper  to  be  filed  is  perforated  at  the  top  by  inserting  that 
end  of  the  commercial  paper  in  a  Shannon  perforator  which  is 
either  attached  to  the  bottom  of  the  file  or  is  used  as  a  separate 
instrument.  After  the  end  of  the  paper  or  the  invoice  has 
been  perforated  and  the  arch  opened, 
the  invoice  is  slipped  over  the  spindle 
and  the  arch  is  closed  by  turning  the 
end  of  the  arch  inward,  toward  the 
spindle.  The  separate  sheets  are 
raised  over  the  arch  and  pushed  down- 
ward. 

This  is  a  very  convenient  file,  as  it 
may  be  laid  down  flat  on  the  shipping 
clerk's  desk,  hung  up  near  his  desk, 
and  carried  about  the  shipping  de- 
partment, if  notations  have  to  be 
made,  or  the  clerk  has  to  answer  any 
telephone  message  in  reference  to  any 
of  the  invoices  which  are  temporarily  SHANNON  FILE 

filed  on  the  Shannon  file. 

The  advantage  besides  convenience  in  carrying  it  about  for 
reference  while  temporarily  using  any  commercial  paper  or  letter 
is,  that  papers  cannot  be  lost  from  the  file  unless  they  are  re- 
moved from  the  file,  and  this  is  impossible  unless  the  arch  is 
opened  and  the  ends  are  turned  backward.  This  file  cannot  be 
used  for  any  large  quantity  of  commercial  papers  as  the  height 
of  the  arch  shows  the  capacity  of  the  file. 

The  Loose  Sheet  System 

or 
Flat  Box  File  System 

This  is  one  of  the  systems  used  in  filing  which  was  used 
before  the  introduction  of  the  modern  vertical  system  of  filings. 


198  OFFICE   PRACTICE 

It  is  used  for  filing  receipts,  orders,  unfilled  sales  slips,  invoices, 
while  being  checked  by  the  receiving  department  of  a  firm  o:; 
for  a  small  business  concern  where  correspondence  is  not  very 
extensive.  The  box  has  a  hinged  cover  with  alphabetically 
indexed  manilla  sheets  a  little  larger  than  the  ordinary  letter 

paper.  Each  manilla  sheet 
has  a  linen  tab  on  which 
is  printed  a  letter  of  the 
alphabet. 

This  file  is  an  inexpensive 
way  to  keep  business  papers 
in  such  shape  that  they  can 
be  readily  found.     The  only 
LOOSE  SHEET  TRANSFER  CASE         advantage  of  the  box  file  is 

its  inexpensiveness.  The  dis- 
advantages of  this  system  are  the  same  as  those  of  the  old- 
fashioned  letterpress  book;  the  letters  of  any  one  company 
are  scattered  through  a  number  of  different  boxes,  and  they 
are  liable  to  fall  out  of  the  box  if  it  is  placed  on  the  end. 
These  boxes  are  generally  placed  on  end  in  a  row  on  shelves 
where  they  become  covered  with  dust. 

Letters,  invoices,  vouchers,  or  any  other  information  or  data 
may  be  filed.  Two  systems  are  used,  the  flat  and  the  vertical. 
In  the  flat  system  the  papers  are  filed  in  a  box  or  drawer.  In 
the  vertical  system  the  papers  are  filed  standing  on  edge  in  a 
vertical  cabinet.  These  cabinets  usually  have  four  drawers  in 
each  section  large  enough  to  file  the  regular  size  business  letter 
vertically  in  manilla  folders.  These  folders  keep  the  material 
in  excellent  condition,  and  the  papers  filed  in  them  may  be  re- 
ferred to  immediately. 

Some  firms  transfer  all  their  letters  from  the  files  every  six 
months.  The  drawers  of  each  vertical  filing  cabinet  contain 
either  a  set  of  alphabetic  guides,  a  set  of  numeric  guides,  a  set 
of  geographic  guides,  or  a  set  of  subject  guides.  The  guides 
depend  upon  the  system  used  by  the  company.  The  follow-up 


INDEXING  AND  FILING 


199 


system  is  used  by  all  firms,  but  is  usually  used  in  a  card  index 
file,  or  desk  tickler  system. 

The  alphabetic  guide  cards  are  of  two  kinds — the  plain 
alphabetic,  containing  a  guide  card  for  each  letter  of  the  alpha- 
bet, and  the  divided  alphabet 
which  allows  for  a  greater  divi- 
sion of  the  alphabet,  as  ex- 
plained in  this  text. 

The  numeric  guide  cards  are 
usually  divided  into  sections  of 
tens,  as  10,  20,  30,  40,  50,  60, 
70,  80,  90,  100. 

The  geographic  guide  cards 
are  divided  by  states.  Back  of 
each  state  is  a  set  of  guide  cards 
for  each  town  or  city  in  the 
state.  For  example:  There  is 
one  guide  card  for  the  State  of 
New  York,  and  following  this 
card  is  a  guide  card  for  every 
city  and  town  in  the  State  of 
New  York,  these  being  arranged 
alphabetically. 

The  follow-up  guide  cards  are 
arranged  for  each  month  in  the 
year  as  January,  February, 
March,  etc.,  and  a  set  of  cards 
numbered  from  I  to  31  for  the 
days  of  the  month.  If  one 
wishes  to  have  his  attention 

called  to  a  letter  on  the  2ist  of  any  month  he  has  the  letter 
or  memoranda  filed  after  the  guide  card  marked  21,  and  this 
guide  card  is  placed  after  the  month  on  which  he  desires  the 
memoranda  called  to  his  attention  as  November.  On  the 
2 ist  of  November,  when  all  the  letters  and  the  folders  are 


CORRESPONDENCE    UNIT   FILING 
CABINET 


200 


OFFICE  PRACTICE 


Graphic  Illustration  of  Filing  a  Letter 

either 

Alphabetically,  Geographically,  Numerically 
or  According  to  the  Subject 


456 
The  File  Number 


Name 


of  the  Firm 


Address 


Subject 


of  the  Letter 


V 
Alphabetic 


V 

Numeric 
Alphabetic  Card 
Index  Necessary 


V 
Subject 


V 
Geographic 


INDEXING  AND   FILING  201 

examined,  he  will  find  the  letter  which  he  desires  to  answer 
on  that  day. 

Individual  folders  are  assigned  to  a  customer  or  creditor 
when  he  becomes  a  regular  customer  or  creditor  and  regular 
correspondence  is  carried  on  with  him.  His  name  is  written 
on  his  folder,  the  surname  first,  then  the  given  name  and  the 
initial,  as  Harding,  Warren  G. 

When  one  is  not  a  regular  correspondent  of  a  firm,  and  when 
only  a  few  letters  from  a  person  are  received,  his  letters  are  filed 
in  a  miscellaneous  folder  which  is  usually  of  a  different  color 
from  the  individual  folders  .in  the  filing  cabinet. 

When  letters  or  invoices  are  removed  from  the  files  for  any 
reason  the  removal  of  the  letter  must  be  noted  on  the  Out  Card, 
as  explained  later. 


The  Automatic  Index  System  of  Filing 

This  is  an  Alphabetical  system  with  a  Numerical  check.  The 
alphabet  is  divided  into  different  sections  for  filing  letters 
or  cards  by  the  surname  or  family  name.  They  are  supplied 
with  10,  20,  40,  60,  80,  cr  125  divisions  of  the  alphabet  for 
filing  by  the  surname  or  the  first  name  of  a  firm  or  subject. 

On  the  guide  card  or  folder  of  each  division  the  alphabet  is 
divided  into  nine  sections  for  filing  by  the  given  name  or  the 
second  name  of  a  firm  or  subject. 

The  numbers  assigned  to  the  correspondence  or  cards  are  de- 
termined from  a  chart  printed  on  each  guide  card  or  folder. 
The  larger  of  the  two  keys  or  divisions  of  the  alphabet  on  the 
card  or  folder  is  for  the  file  number  of  the  surname  or  first 
name  of  a  firm  or  subject,  while  the  smaller  division  (nine) 
of  the  alphabet  is  for  the  file  number  of  the  given  name  or 
second  name  of  the  firm  or  subject. 

This  method  of  filing  also  provides  a  group  number  for  filing 
and  refiling  letters  and  folders. 


L.    B.  AUTOMATIC   INDEX 


202 


INDEXING  AND   FILING 

The  ten  division  follows: 

Surname  Key 


203 


A  i 

B  2 

C3 

D-F4 

G-H  5 

I-L6 

M-N  7 

O-R  8 

S  9 

T-Z  10 

Given  Name  Key 


0 
Single 
Names 

i 

2 

3 

4 

5 

6 

7 

8 

9 

A-B 

c 

D-E 

F-G 

H-I 

J-K 

L-M 

N-S 

T-Z 

The  twenty  division  follows: 

Surname  Key 


A  i 

B  2 

Cj 

D  4 

ES 

F  6  |  G  7 

H8 

I-J  9  |  K  10 

L  ii 

vl  12   N-Oi3 

P-Q  14 

RiS 

S  16 

Ti7 

U-Vi8 

Wi9 

XYZ20 

Given  Name  Key 


o 

Single 
Name 

i 

2 

3 

4 

5 

6 

7 

8 

9 

A-B 

C 

D-E 

F-G 

H-I 

J-K 

L-M 

N-S 

T-Z 

One  can  easily  see  from  the  examples  given  that  the  surname 
key  changes  with  the  different  divisions  of  the  alphabet  while 
the  given-name  key  remains  the  same,  in  each  case  of  division, 
having  only  nine  divisions  for  the  given-name  file  number. 

To  illustrate  the  use  of  this  system  take  the  name  John  Smith 
and  file  a  letter  or  card  from  him  under  the  ten  division  and 
then  under  the  twenty  division. 


204  OFFICE    PRACTICE 

To  File  Under  the  Ten  Division  Automatic  System: 

Smith — the  surname  is  under  the  file  number  9. 
John — 'the  given  name  is  under  the  file  number  6. 
Therefore  the  file  number  for  all  records  from  John  Smith  under 
the  automatic  ten  division  is  96. 


i\wX»»»\Jt« 


L 


FOLDERS 

To  File  Under  the  Twenty  Division  Automatic  System: 

Smith — 'the  surname  is  under  the  file  number  16. 
John — the  given  name  is  under  the  file  number  6. 
Therefore  the  file  number  for  all  records  from  John  Smith  under 
the  automatic  twenty  division  system  is  166. 

Assignment: 

i.  Use  the  different  divisions  of  the  automatic  index  system 
and  place  the  automatic  file  number  on  the  mail  received 
today  by  the  incoming  mail  department.  After  deciding 
on  the  file  number  place  the  number  in  the  upper  right-hand 


INDEXING  AND   FILING  205 

corner  of  the  card  or  letter  and  circle  the  same.  This  is 
better  if  written  with  a  red  pencil,  as  the  file  clerk  can  see 
the  file  number  immediately  upon  taking  up  the  card  or 
letter  for  filing. 

2.  After  the  cards  and  letters  are  ready  for  filing,  place  them 
in  a  basket  on  the  desk  ready  for  the  messenger  or  clerk  to 
take  to  the  file  department. 

3.  For  extra  practice  in  using  this  system,  which  is  used  by 
a  number  of  insurance  companies,  the  student  may  take 
the  mailing  list  of  The  McGill  Company  and,  using  the 
twenty  division  of  the  automatic  index,  place  the  file  number 
on  a  list  of  the  names  of  the  customers  and  creditors.     For 
more   practice,  take  the  ten   division,   and  after  deciding 
upon  the  file  numbers  in  this  division,  comment  on  the  dif- 
ference in  the  file  numbers   of  the   surnames  of  the   two 
divisions.     The  given-name  file  number  will  be  the  same  in 
both  divisions. 

Cross  Reference  and  Follow  Up 

Cross  reference  is  necessary  in  filing  letters  and  cards  for 
the  reason  that  many  times  a  letter  contains  more  than  one 
subject,  and  as  a  letter  or  paper  cannot  be  filed  in  more  than 
one  place,  some  provision  must  be  made  to  find  it,  should  it 
be  asked  for  under  one  of  the  other  subjects. 

For  example: 

A  Letter  from 

Camp  Devens,  Mass. 
July  21,  1918 

To  the  Adjutant  General  of  the  Army, 
Washington,  D.  C. 

Three  thousand  steel  helmets  needed  at  this  Camp  for 
the  proper  equipment  of  troops  for  Oversea  service. 

Harrison. 


206 


OFFICE   PRACTICE 


The  original  letter  would  be  filed  under  Steel  Helmets,  and 
a  cross  reference  would  be  made  out  and  the  letter  filed  under 
Camp  Devens,  Mass.  The  first  would  be  filed  according  to 
subject,  while  the  other  would  be  filed  according  to  the  geo- 
graphic system. 


CHOSS  REFERENCE  SHEET 

NAME  OR  SUBJECT  FILE  No. 


SEE 

NAME  OR  SUBJECT 


DATE     liUu  £..<<] n 


CROSS-REFERENCE    SEE    CARDS 

This  cross-reference  sheet  or  card  is  always  of  a  bright  color, 
and  is  placed  in  the  folder  in  place  of  the  letter  (original)  or 
card  which  is  filed  elsewhere.  It  is  left  in  the  folder  until  the 
original  is  returned. 

The  Use  of  Tabs  and  Signals 

Tabs  or  signals  are  small  projections  of  different  colors  at- 
tached to  a  metal  clasp.  These  tabs  are  adjustable  and  may 
be  moved  to  any  desired  position  on  a  card  to  classify  the 


INDEXING   AND   FILING 


207 


record  by  date,  subject,  or  location  regardless  of  the  general 
arrangement.  The  object  of  tabs  and  signals  is  to  get  extra 
information  out  of  the  files.  The  cards  in  themselves  give  us 
a  certain  desired  information,  while  the  addition  of  these  small 
tabs  or  signals,  as  they  are  called,  give  more  detailed  information. 


Alabama 


J 


/~6~V~'7  y 
/V-y^XIil 


DAY,    WEEK,    MONTH,    AND    STATE    CARDS 

Insurance  companies  use  tabs  on  their  alphabetic  cards 
which  show  the  names  and  the  addresses  of  their  policy 
holders.  They  tab  these  cards  to  indicate  the  date  when  the 
premiums  are  due  and  the  renewal  date  of  the  policy. 

Real  estate  companies  have  an  alphabetic  set  of  cards  contain- 
ing the  names  and  the  addresses  of  the  persons  whose  rent  they 
collect.  They  tab  these  cards  to  indicate  the  amount  of  the 
monthly  rent  due  from  each  person,  the  date  on  which  this 
rent  is  due,  the  date  on  the  expiration  of  the  lease,  the  apart- 


208  OFFICE   PRACTICE 

ments  which  are  to  let,  private  houses  which  are  to  rent,  whether 
a  store  or  a  garage  is  to  let,  and  any  other  transactions  in  which 
real  estate  concerns  engage. 

A  university  in  New  York  City  has  an  alphabetic  card 
catalogue  of  all  its  students.  To  classify  the  students  who  at- 
tend the  different  schools  of  this  university  the  alphabetic  cards 
are  tabbed  as  follows:  The  students  who  attend  the  regular  day 
session  of  the  university  have  a  red  tab  on  the  right-hand  top 
corner  of  their  cards;  blue  tabs  indicate  the  students  attend- 
ing the  evening  session,  while  all  cards  having  a  white  tab  on 
the  left-hand  top  corner  indicate  that  the  students  whose 
names  and  addresses  are  recorded  on  these  cards  were  attend- 
ants at  the  previous  summer  session  of  the  university.  These 
summer-session  students'  cards  are  kept  in  the  file  until  the 
next  summer  session,  and  a  catalogue  of  that  session  is  sent 
to  their  addresses  previous  to  the  opening  of  the  summer 
school. 

During  the  World  War  tabs  were  used  on  the  cards  of  sol, 
diers  in  the  different  camps  throughout  the  United  States  to 
indicate  passes  and  furloughs.  The  Red  Cross  use  colored  tabs 
for  their  register  cards,  different  colored  tabs  for  nurses,  doc- 
tors, civilian  relief,  and  the  families  assisted.  Red  tabs,  for 
example,  are  used  to  indicate  the  necessary  cases  for  assistance 
and  immediate  relief. 

Some  companies  use  cards  made  with  small  grooves  which 
are  arranged  so  that  by  a  turn  of  the  handle  all  the  cards  of  a 
certain  classification  drop  into  a  certain  compartment;  other 
houses  have  their  tabs  made  so  that  a  small  wire  may  be  in- 
serted through  the  tabs  of  the  same  color  and  thus  may  be 
lifted  out  of  their  place  in  the  file  and  used  for  reference. 

Employees'  Record  Cards 

The  following  card  system  is  used  by  some  companies  for 
records  of  their  employees: 


INDEXING   AND   FILING 


209 


REVERSE  SIDE  OF  EMPLOYEE'S  RECORD  OF  APPLICATION 
Position  wanted?  Languages  spoken  and  written? 


Stenographer 

Name?         Hamiil,  Anna  H. 
Address?         620  West  I2ist  Street 
New  York  City 

Single  or  Married? 
(Check) 


Italian  and  English 
French  or  Spanish 


Nationality? 
American 


Occupation? 
Stenographer  21 


Age? 


PREVIOUS   RECORD 

Employed  by  Position                        Date  Salary          Refer  to 

A.  B.  Company  Stenographer     June  I9i8-Feb.   1920  $18.50  J.B.Foster 

J.  H.  M.     "  Feb.  1920-Mar.  1921  21.50  A.  Williamson 

X.  Y.  Z.     "  Mar.  i92i-Sept.  1921  24.75  M.Harrison 

Remarks:     Ability  to  take  dictation  in  Italian,  French,  or  Spanish.    Accurate 

in  transcription  of  notes.     Traveled  in  Italy. 
or      Ability  to  take  dictation  in  French.    Transcription  excellent.    Has 

spent  three  years  in  Paris. 
or      Ability  to  take  dictation  in  Spanish.    Transcription  excellent.    Can 

take  dictation  on  typewriter. 


The  opposite  side  of  these  cards  contain  the  name,  address, 
and  the  date  of  employment  by  the  company,  also  the  position 
held,  salary,  and  any  remarks  about  record,  as  date  of  leaving 
and  known  address,  or  the  date  discharged.  This  side  is  used 
in  filing,  as  the  name  and  address  are  at  the  top  of  the  card. 

The  cards  are  tabbed  to  obtain  desired  additional  infor- 
mation. 

All  stenographers'  cards  have  a  green  tab  on  the  upper  left 
side.  Typists  have  a  red  tab,  those  who  understand  Italian 
have  a  white  tab  in  the  upper  right-hand  corner;  a  yellow  tab 
indicates  a  knowledge  of  French,  while  a  purple  tab  indicates 
a  knowledge  of  Spanish. 


210 


OFFICE   PRACTICE 


Assignment: 

1.  Make  out  employee  record  cards  for  each  member  of  your 
class. 

2.  Use  tabs  to  indicate  stenographers,  typists,  and  knowledge 
of  modern  languages. 

3.  File  the  cards  alphabetically. 

Real  Estate 

Assume  that  The  McGill  Company,  210  Bedford  Street, 
Stamford,  Connecticut,  will  conduct  one  section  of  their  busi- 
ness as  a  real  estate  department. 

The  records  will  be  kept  by  the  card  system.  They  desire 
a  list  of  property  "For  Rent"  and  "For  Sale."  This  list  is 

divided  into  vacant  lots, 
farms,  dwellings  (one  and 
two  families),  business 
properties,  loft  buildings, 
apartment  houses  (elevator 
and  non-elevator),  coun- 
try residences,  and  sea- 
shore cottages  or  summer 
homes. 

Signals  and  tabs  will  be 
used  to  obtain  additional 
information  from  these 
cards. 

Tabs  may  be  used  to  in- 
dicate streets,  private  houses,  apartments,  differences  in  the 
rental  charges,  etc.  For  example:  a  red  tab  might  indicate 
a  private  house  with  a  garage;  a  blue  tab  might  indicate  a 
private  house  without  a  garage;  a  green  tab  might  indicate  a 
country  residence  near  the  shore;  a  yellow  tab  might  indicate 
a  country  residence  with  water-front  privileges,  and  the  use  of 
the  private  tennis  court  on  the  adjoining  property. 


FOLLOW-UP    GUIDES 


INDEXING  AND   FILING  211 

A  follow-up  system  is  to  be  used.  For  example:  A  person 
may  state  that  he  is  interested  in  purchasing  a  two-family 
house  in  a  certain  desirable  neighborhood,  but  he  will  not 
pay  more  than  the  assessed  valuation  of  the  property,  and  may 
also  state  the  price  he  desires  to  pay  for  the  property  described. 

In  such  a  case  a  card  will  be  made  out,  containing  the  above 
information  and  the  name  and  address  of  the  intended  client. 
When  the  agent  in  charge  of  the  real  estate  department  has  any 
property  on  his  list  which  he  thinks  might  interest  this  client 
he  either  makes  a  personal  call,  or  sends  a  description  of  the 
property.  If  the  prospect  shows  interest,  his  card  is  placed 
in  the  desk  tickler  or  follow-up  file,  and  he  is  followed  up  until 
the  property  is  sold  to  him  or  word  is  received  stating  that 
he  does  not  desire  to  buy  the  real  estate  in  question. 

All  rentals  and  all  leased  property  are  to  be  tabbed  on  cards 
to  indicate  the  dates  when  the  rent  falls  due  and  when  the  lease 
expires.  These  rental  cards  may  be  used  as  a  bookkeeping 
record  of  the  amount  and  the  date  when  the  rent  is  due,  and 
when  the  payment  is  made  each  month  by  each  tenant.  By 
this  method  a  cash  account  is  kept  with  each  tenant  on  that 
tenant's  individual  card. 

The  signals  and  tabs  may  be  used  to  indicate  other  informa- 
tion such  as  the  street,  town,  or  city  (geographical),  or  the 
numbers  on  a  street  or  block  (numerical"). 

Removal  of  Material  from  Files 

After  the  cards  have  been  filed  alphabetically,  if  a  card 
or  letter  is  taken  from  the  file  for  any  reason,  a  requisition 
blank  should  be  made  out  by  the  person  who  wishes  to  use 
the  letter  or  card.  This  card  should  be  placed  in  the  folder 
from  which  one  removes  a  letter,  or  it  should  be  placed  in  the 
file  if  a  card  is  removed  so  that  anyone  looking  for  that  card 
may  know  why  the  card  or  letter  is  not  in  the  file  and  where 
it  may  be  found. 


212  OFFICE   PRACTICE 

Below  is  a  form  of  such  a  requisition  blank. 

Filing  Department 
Please  give  bearer  the  following  card  or  letter: 

Name 

Location 

Date Subject 


Signature. 


Department 


Another  method  used  in  some  business  houses  is  not  to  file 
this  requisition  blank,  but  simply  to  place  the.  card  on  a  small 


SUBSTITUTION    CARD 


spike  file  and  make  an  entry  on  a  regulation  size  Out  Card, 
which  is  always  on  colored  paper,  in  order  to  contrast  with 
other  material  in  the  file.  After  recording  the  data  on  this 
card  it  is  either  placed  in  the  folder  from  which  the  letter  has 
been  removed  or,  if  it  contains  a  number  of  entries  it  is  placed 


INDEXING  AND   FILING 


213 


at  the  front  of  the  filing-cabinet  drawer, 
is  suggested  for  a  regulation  Out  Card: 


The  following  form 


Name  of  company  or  subject  of  letter  or  card 

Date  of  letter 

Borrower's  name 

Borrower's  department 

Date  borrowed 

A  check  for  the  return  of  the  letter  or  the  card,  to  the  file,  or 

the  date  of  the  return  of  the  letter  or  card. 


Copies  of  Blank  Forms 
BUSINESS  PROPERTY 


Location 

Stones 

Office  Bldg.                  Material 

Factory 

Loft  Bldg. 

Stable 

Size 

Elevator 

Taxes 

Gross  Rent 

M't'g. 

Held  by 

Price 

Owner 

Address 

VACANT  LOTS 

Location  Size  of 

Graded 

Street  cut  and  sidewalks  laid 
Distance  from  R.R.,  Trolley  line 
Sewage  and  water  connections 
Gas  and  Electricity 

Price  wanted  M't'g.  Held  by 

Owner  Address 


REAL  ESTATE  TAB  CARDS 


2I4 


INDEXING  AND   FILING  215 

Assignment:  From  copies  of  the  local  newspaper  select  ad- 
vertisements of  real  estate  for  rent  and  for  sale.  Make  out 
cards  similar  to  those  shown  on  page  214  for  such  advertisements 
as  you  have  selected. 

File  the  cards  in  the  small  card-index  drawer  as  follows: 

a  All  the  For  Sale  cards  file  in  the  drawer  marked  FOR  SALE. 
These  cards  are  to  be  filed  alphabetically  according  to  the  loca- 
tion of  the  property  which  is  for  sale.  For  example,  a  piece  of 
property  for  sale  located  on  Bedford  Street  follows  the  card  on 
which  is  recorded  the  sale  of  property  on  Adams  Avenue. 

b  All  the  For  Rent  cards  file  numerically  if  the  streets  are  num- 
bered as  2i4th  Street,  but  alphabetically  if  streets  are  named 
as  Spring  Street,  Broadway. 

c  After  the  For  Rent  cards  are  filed,  arrange  them  numerically  as 
applied  to  each  street.  For  example:  We  have  two  cards  for 
Bedford  Street,  one  210  and  one  135.  These  cards  are  filed 
back  of  the  guide  card  B,  and  then  we  place  135  before  210. 

d  Apartment  To  Let  cards  file  as  stated  above,  numerically  as  to 
streets  if  streets  are  numerically  arranged  as  1 25th  Street,  264th 
Street,  and  then  as  to  the  numbers  on  that  particular  street. 
If  the  streets  are  named  as  Main  Street,  Broad  Street,  file 
alphabetically,  and  then  numerically  as  to  the  numbers  on  Main 
Street  and  Broad  Street. 

e  Farms,  file  geographically,  as  to  the  state  in  which  the  farm  is 
located,  and  then  in  the  proper  place  for  the  town  or  city.  Arrange 
alphabetically  all  the  cards  filed  back  of  each  town  or  city  guide 
card. 

f  County  Residences,  file  geographically  as  above,  then  arrange  the 
cards  in  each  city  or  town  alphabetically  and  numerically  if 
there  is  more  than  one  card  for  any  certain  street. 

g     Business  Property,  file  alphabetically  for  location.     File  numer- 
ically if  more  than  one  card  for  any  special  location. 
If  we  desire  to  locate  any  card  on  which  data  is  contained  either 

For  Sale,  For  Rent,  Apartment,  Farm,  Country  Residence  or 
Business  Property,  we  want  this  card  so  filed  that  same  may  be 
obtained  immediately. 


216  OFFICE   PRACTICE 

Assignment  on  Vertical  Filing. 

Open  the  folder  labeled  Incoming  Mail  and  examine  the  let- 
ters and  invoices  marked  for  filing  by  the  incoming  mail  clerk, 
and  the  letters  marked  for  filing  by  the  different  heads  of 
departments.  Underline  the  filing  name  with  a  red  pencil,  as 
the  filing  name  must  always  be  indicated  by  underlining  in 
red.  If  to  be  filed  geographically?  underline  the  address  in 
red.  If  numeric  system  of  filing  is  to  be  used,  write  the  file 
number  at  the  top  of  the  paper  and  circle  in  red.  If  the  letter 
is  to  be  filed  according  to  the  subject  of  the  letter  or  contents, 
.or  if  the  clerk  has  failed  to  indicate  the  subject,  read  the  letter 
and  decide  under  which  subject  it  should  be  filed,  and  write 
the  subject  and  circle  same. 

If  the  letter  is  stamped,  "  Follow  up  this  letter  December  21 " 
file  it  after  the  guide  card  of  that  day  and  month. 

After  having  examined  the  incoming  mail  for  filing,  the 
student  should: 

1.  File  all  the  letters  assigned  for  alphabetical  filing. 

2.  File  all  the  letters  assigned  for  numerical  filing. 

3.  Fill  all  the  letters  assigned  for  geographical  filing. 

4.  File  all  the  letters  assigned  for  subject  filing. 

5.  File  all  the  letters  assigned  for  follow-up  filing. 

If  an  individual  folder  has  been  made  out  for  the  corre- 
spondent, file  his  letters  in  his  individual  folder,  arranging  them 
according  to  the  date  of  the  letter,  with  the  latest  date  on  top 
at  the  front  of  the  drawer  of  the  vertical  filing  cabinet. 

If  the  correspondent  is  not  a  regular  customer  or  creditor 
and  an  individual  folder  has  not  been  assigned  to  him,  file  his 
letters  in  a  miscellaneous  folder  and  arrange  all  correspondence 
in  the  folder  alphabetically.  When  customers  and  creditors 
become  regular  correspondents  and  several  letters  are  received 
from  them,  they  should  have  a  regular  folder  assigned  to  them 


INDEXING  AND   FILING 


217 


and  their  previous  correspondence  must  be  removed  from  the 
miscellaneous  folder. 

All  letters  in  the  miscellaneous  folders  must  be  alphabetically 
arranged. 

Card  Index  Filing 

As  the  system  of  filing  cards  vertically  is  identical  with  the 
letter  filing,  the  following  will  illustrate  card  filing:  Each  card 
index  file  usually  contains  a  set  of  alphabetic,  geographic,  sub- 
ject, numeric,  all  the  months,  and  a  set  of  cards  numbered 
from  I  to  31,  indicat- 
ing the  days  of  the 
month.  Data  on 
cards  may  be  filed  in 
any  of  these  systems. 
A  small  box  known 
as  a  desk  tickler  often 
contains  the  neces- 
sary guide  cards  for 
a  Follow-up  system 
as  these  small  ticklers 
are  very  convenient  Q-TRAY  CABINET  CARD  INDEX 

to  handle,  especially 

for  memoranda  to  be  called  to  one's  attention  at  a  later 
date. 

Assignment:  On  small  cards,  size  3x5  inches,  typewrite  the 
list  of  customers  and  creditors  of  The  McGill  Company.  On 
each  card  list  the  name  of  the  firm,  the  address,  the  kind  of 
business,  and  the  file  number. 

File  these  cards  either  alphabetically,  geographically,  numeri- 
cally, or  according  to  the  subject  or  the  business  of  the  concern. 

When  several  cards  are  filed  behind  any  certain  guide  card, 
as  the  guide  card  representing  the  state  of  New  York,  alpha- 
betize the  different  towns  and  cities. 


CHAPTER  NINE 
POST  OFFICE  AND  TELEGRAPH 

Incoming  Mail 

EVERY  morning  all  letters  that  have  been  received  in  the 
mail  should  be  sent  to  the  incoming  mail  department.  Open 
each  envelope  by  cutting  the  envelope  on  the  three  sides  and 
then  lay  the  envelope  open  flat  on  the  desk  in  order  to  insure 
any  possibility  of  overlooking  any  inclosures,  such  as  checks, 
money  orders,  and  salesmen's  orders.  Care  should  be  used  in 
properly  adjusting  the  date  stamp  every  morning,  as  the  date 
of  the  receipt  of  a  letter  sometimes  has  an  important  effect  on 
a  business  transaction  and  may  aid  in  case  of  a  complaint.  The 
date  and  time  on  the  post-mark  of  an  envelope  will  indicate 
the  hour  of  the  mailing  of  a  letter.  In  case  of  new  customers 
the  printed  name  of  the  concern  on  the  envelope  may  identify 
the  person  signing  the  letter  as  signatures  are  sometimes  difficult 
to  decipher. 

All  letters  should  be  sorted  according  to  the  departments  to 
which  they  are  to  be  sent. 

Stamp  each  letter,  bill,  invoice,  statement,  with  the  date  of 
receipt  as  "Received,  February  9,  1921,  by  the  McGill  Com- 
pany." 

Put  all  letters  and  their  inclosures  for  each  department  into 
a  large  envelope  on  which  you  have  placed  a  gummed  label 
indicating  the — • 

Name  of  department 

Name  of  department  manager 

Date  of  receipt 

Initial  of  incoming  mail  clerk 

218 


POST  OFFICE   AND  TELEGRAPH  219 

All  inclosures  must  be  fastened  to  each  letter  by  a  clip. 

A  messenger  boy  should  deliver  these  envelopes  to  the  dif- 
ferent department  managers  as  indicated  on  the  label. 

All  letters  should  be  arranged  according  to  the  name  of  the 
persons  to  whom  they  are  to  be  given.  A  typewritten  slip  may 
indicate  the  name  of  the  person  in  the  department  to  whom 
the  letters  are  to  be  given,  and  this  slip  may  be  fastened  to  the 
letters  by  a  clip.  As  the  messenger  boy  passes  through  the  dif- 
ferent departments  to  distribute  the  incoming  mail  at  different 
times  of  the  day,  he  could  collect  the  outgoing  mail,  also  the 
mail  for  the  other  departments,  and  deliver  it  on  his  return  trip. 

Each  department  should  have  wire  baskets  in  which  the 
messenger  boy  could  place  the  incoming  mail.  Another  wire 
basket  should  contain  the  mail  for  the  outgoing  mail  depart- 
ment. 

* 

Assignment: 

1.  Arrange  all  the  incoming  mail  received  to-day  by  cutting 
the    envelopes    as    directed.     Remove    the    inclosures     as 
checks,  invoices,  notes,  or  money  orders. 

Append  the  check,  money  order,  or  invoice  to  the  letter  by 
a  clip  and  check  the  word  "Inclosure"  on  the  letter. 
Adjust  the  date  stamp  to  the  current  date  and  stamp  all 
the  letters  in  the  upper  right-hand  corner  with  the  date  of 
the  receipt  of  same. 

If  any  letter  is  to  be  called  to  the  attention  of  any  special 
person  or  member  of  the  company,  stamp  it: 

Call  to  the  attention  of 

Department 
or  simply 

Attention  of 

Department 

2.  Write  the  name  of  the  person  to  whose  attention  the  letter 
is  to  be  called  in  ink  or  pencil,  and  the  department  in  which 


220  OFFICK    PRACTICK 

this  person  may  be  located,  or  use  their  personal  stamp  if 
one  is  provided. 

3.  Sort  the  letters  into  folders  for  the  different  departments 
and  names  of  the  persons  to  whom  they  are  to  be  sent. 
For  ease  in  sorting,  a  sorting  tray  may  be  used,  as  they 
usually  contain  an  alphabetic  set  of  guide  cards. 

After  sorting  the  letters,  place  them  in  folders  or  envelopes 
on  which  a  gummed  label  is  placed  as  per  instructions,  and 
send  the  messenger  boy  throughout  the  different  depart- 
ments. 

4.  In  order  to  retain  a  record  of  all  the  incoming  mail  of  the 
company,  make  out  a  memorandum  containing  the  follow- 
ing information  concerning  each  letter  received: 

Memorandum  of  Incoming  Mail — Date,  July  7,  IQ2I. 


Name 
of  Firm 

Address 
City  and  State 

Date  of  the 
receipt  of 
the  letter 

Any  desired 
information 

2  — 

3— 

4— 

5— 

As  the  messenger  passes  through  the  different  departments 
he  must  collect  the  letters  which  have  been  read  and  answered 
by  the  different  department  heads  and  executives  to  whom 
they  were  addressed.  These  letters  when  returned  must  be 
checked  up  by  the  incoming  mail  clerk  by  referring  to  the 
memorandum  record,  and  then  must  be  sent  to  the  filing  de- 
partment to  be  filed  for  future  reference. 


POST  OFFICE  AND  TELEGRAPH  221 

If  the  letters  are  to  be  filed  alphabetically,  underline  in  red 
the  name  of  the  firm  from  whom  the  letters  have  been  received. 
Look  through  the  incoming  mail  which  has  been  prepared  for 
filing  and  note  the  letters  stamped: 

Bring  to  the  attention  of  Mr. 

on date 

Make  out  a  card  as  follows: 

Name  of  correspondent 

File  No.. 


(The  date  and  the  name  of  the  person  who 
wishes  the  letter  called  to  his  attention  on  that 
date. 

File  this  card  alphabetically  and  according  to  date  in  the 
follow-up  drawer  or  desk  tickler.  The  daily  inspection  of  the 
follow-up  folders  will  present  this  card  on  the  day  and  date  on 
which  it  is  to  be  brought  to  the  attention  of  Mr 

Go  to  the  files  and  after  removing  the  desired  letter  and 
making  the  necessary  notation  on  the  out  card,  send  it  to  the 
person  who  desires  it  on  that  date. 

Later,  when  these  are  returned,  the  record  of  return  is  to 
be  made  on  the  out  card  and  the  letters  replaced  in  the  files  for 
future  reference. 

After  cards  are  made  out  for  all  letters  in  to-day's  mail, 
students  must  file  them  in  a  card  index  drawer  or  a  desk  tickler 
as  explained  in  the  chapter  on  Filing. 

Examine  our  follow-up  drawer  or  desk  tickler,  withdraw  all 
cards  for  this  date.  Look  up  the  original  letters  in  the  file 
department  and  append  the  card  to  the  letter  in  each  case. 

Leave  the  letters  with  the  chief  clerk,  who  will  send  the 
messenger  with  them  to  the  department  in  which  the  persons 
are  who  desire  them. 


222 


OFFICE   PRACTICE 


Outgoing   Mail 

Great  care  should  be  taken  in  preparing  letters  for  the  out- 
going mail,  as  these  letters  should  convey  the  high  standard 
of  the  firm.  A  slight  error  in  formulating  a  letter  may  lose 
a  good  customer  or  fail  to  obtain  a  new  customer.  Every 
letter  should  have  a  personal  and  individual  appeal  to  the 
person  to  whom  it  is  addressed. 

When  all  the  letters  have  been  signed  and  ready  for  mailing, 
they  should  be  placed  in  the  outgoing  mail  basket,  each  letter 
being  placed  under  the  flap  of  the  envelope  in  which  the  letter 
is  to  be  inclosed.  Before  placing  letters  in  this  basket,  each 
letter  should  be  examined  for  inclosures  such  as  checks,  pam- 
phlets, printed  matter,  money  orders,  etc.,  and  the  amount  of 
the  checks  or  money  orders  should  be  verified.  After  examina- 
tion for  the  signature  and  the  date,  fold  the  letters,  following 
the  directions  which  follow: 

A  business  letter  should  always  be  folded  neatly.  It  should 
fit  the  envelope  snugly.  Each  fold  should  be  straight. 


FIG.    I. 


FIG.    2. 
HOW   TO    FOLD    LETTER 


FIG.   3. 


An  ordinary-sized  letter  sheet  is  folded  properly  as  follows: 
Grasp  the  lower  end  of  the  letterhead  and  fold  upward  to 
within  1/8  inch  of  the  top — 'the  slight  margin  at  the  top  is  left 
to  make  it  easier  to  separate  the  ends  in  unfolding.  See  Figure 
I.  The  second  fold  is  made  by  folding  from  right  to  left — 
dividing  the  width  of  the  letterhead  into  three  nearly  equal 


POST  OFFICE  AND  TELEGRAPH  223 

divisions.  See  Figure  2.  The  third  fold  is  made  from  left  to 
right,  leaving  a  little  margin  as  shown  in  Figure  3,  in  order 
that  the  letter  may  be  easily  opened.  When  the  letter  has 
been  properly  folded  and  inserted  in  the  envelope,  the  top 
should  be  at  the  left  end  of  the  envelope.  Place  the  required 
postage  in  the  upper  right-hand  corner  of  the  envelope. 

If  it  is  necessary  to  have  a  letter  delivered  immediately  upon 
its  receipt  at  a  post  office,  affix  a  special  delivery  stamp,  or  ten 
cents'  worth  of  ordinary  stamps,  besides  the  necessary  postage. 
(See  Postal  Regulations,  Section  851.) 

A  carbon  copy  must  be  made  of  each  letter  sent  out  by  the 
company.  The  carbon  copy  is  typed  on  a  plain  sheet  of  paper 
while  the  original  must  be  on  the  letterhead  paper,  both  being 
typewritten  at  one  operation.  (See  lesson  on  carbon  copies, 
Chapter  Seven.) 

A  valuable  package  containing  an  inclosure  may  be  regis- 
tered, or  a  parcel-post  package  may  be  insured.  If  a  receipt  is 
desired  from  the  recipient  of  a  registered  letter  or  package, 
write  "receipt  requested,"  or  no  receipt  will  be  returned 
through  the  post  office  to  you  from  the  one  who  received  the 
same. 

If  it  is  inconvenient  to  send  a  check  or  stamps  in  a  letter, 
one  may  obtain  a  money  order  at  the  post  office  for  any  sum 
not  exceeding  $100.00.  (See  Postal  Regulations,  Section  1123.) 

Assignment: 

'i.  •  Letters  requiring  inclosures  may  be  placed  in  one  section. 
Place  the  inclosures  on  the  open  letter  under  the  flap  of 
the  envelope  in  which  the  same  are  to  be  inclosed  so  they 
may  be  inclosed  when  the  letters  are  folded  and  examined 
for  the  signature. 

2.  Place  all  letters  and  packages  to  be  registered  and  sent  by 
parcel  post  in  a  separate  section. 

3.  Prepare    all    letters,    cards,    packages,    for   mailing    as    per 
instructions. 


224  OFFICE   PRACTICE 

4.  Place  all  the  outgoing  mail  in  the  outgoing  mail  box. 

5.  Send   all  the  carbon  copies  of  the  outgoing  letters  to  the 
filing  department. 

6.  As  in  the  incoming  mail  department,  make  out  a  memoran- 
dum of  all  outgoing  mail   as  a  means  of  checking  up  all 
letters  sent  out  by  the  company  and  as  a  check  on  the  cost 
of  postage. 

Memorandum  of  Outgoing  Mail — -Date-  July  7,  1021. 


Name 
of  Firm 

Address 
City  and  State 

Date  of 
sending 
.letter 

Any  desired 
information 

Cost  of 
postage 

i  — 

2  — 

3— 

4~ 

Metered  Mail 

Away  back  in  the  days  of  our  forefathers,  along  with  goose- 
quills,  parchment,  and  sandboxes,  the  adhesive  postage  stamp 
came  into  existence.  Modern  business  long  ago  discarded  "the 
goose-quill  for  the  steel  pen  and  later  the  pen  for  the  type- 
writer, and  has  accepted  the  telephone,  the  duplicating  ma- 
chine, the  addressing  dachine,  and  countless  other  devices  as 
an  aid  to  business  communication,  but  the  adhesive  postage 
stamp  "still  sticks." 

The  adhesive  stamp  as  an  institution  is  nearly  as  old  as  the 
post  office  itself.  It  came  in  the  days  of  the  pony  express, 
the  canal  boat,  and  the  stage  coach.  Prior  to  that  time  the 


POSTAGE    METER   MACHINE 


225 


226  OFFICE   PRACTICE 

transportation  of  mail  was  a  fairly  uncertain  sort  of  thing.  The 
amount  of  postage  due  upon  a  single  piece  of  mail  was  indorsed 
by  the  postmaster  receiving  it.  The  money  was  collected  from 
the  addressee,  who  had  the  option  of  refusing  to  accept  the  letter 
if  he  saw  fit.  When  the  adhesive  postage  stamp  was  first 
adopted  by  the  United  States  Government,  in  1847,  it  was  as 
great  a  boon  to  business  as  is  the  POSTAGE  METER  which  is 
used  by  many  large  concerns  throughout  the  United  States. 

The  inauguration  of  the  Meter  System  as  an  adjunct  to  the 
postal  service  of  the  United  States  Government  marks  not  only 
an  epoch  in  the  history  of  the  Post  Office  Department,  but 
crowns  with  success  years  of  persistent  effort  on  the  part  of  the 
larger  mailers  throughout  the  country  to  induce  the  Depart- 
ment to  authorize  a  substitute  of  some  kind  for  the  regulation 
adhesive  postage  stamp  on  first-class  mail. 

It  being  admitted  that  the  adhesive  stamp  in  reality  is 
merely  an  accepted  symbol  or  evidence  of  prepayment  postage, 
and  appreciating  not  only  its  impracticability,  from  the  user's 
standpoint  with  the  ever-increasing  volume  of  mail  sent  out 
each  day,  but  that  its  continued  use  retarded  the  dispatch  of 
the  mails  after  reaching  the  Post  Office,  the  Department  finally 
asked  for  and  secured  special  legislation  extending  the  so-called 
"permit"  privilege  to  first-class  mail,  under  such  rules  and  regu- 
lations as  the  Postmaster  General  might  prescribe. 

Under  this  ruling  it  was  suggested  in  the  hearings  of  the 
committees  that  it  was  possible  to  produce  a  machine  with  a 
detachable  meter  that  would  print  on  each  piece  of  mail  matter 
a  combination  stamp  and  postmark,  and  which  could  be  brought 
to  the  Post  Office  and  set  for  the  number  of  impressions  desired. 
When  the  number  of  paid  impressions  had  been  exhausted,  the 
mechanism  would  lock  the  device  against  further  operation  until 
brought  to  the  Post  Office  and  recharged.  The  use  of  such  a 
device,  it  was  shown,  would  enable  the  Department  to  collect 
the  money  in  advance  and  incidentally  save  two  operations 
otherwise  necessary  in  facing  the  mail  and  canceling  the  stamps 


No.  23 10 
METER 


SAMPLE    IMPRINTS    OF    POSTAGE    METERS 
227 


228  OFFICE   PRACTICE 

preliminary  to  the  primary  distribution — two  operations  that 
consume  valuable  time  during  the  rush  hours  of  the  day. 

It  was  also  shown  that  such  a  device  could  be  used  on  so- 
called  "mixed"  mail  (not  identical  as  to  size,  weight  or  content, 
but  under  the  same  classifications  as  to  rate)  on  which  it  would 
be  impossible  to  determine  the  correct  postage  per  piece  by 
average  weight  as  is  done  on  other  classifications  in  which  all 
the  pieces  must  be  identical. 

Following  these  recommendations,  the  Pitney-Bowes  Postage 
Meter  was  perfected  and  submitted  to  the  Department,  and 
after  exhaustive  tests  before  a  committee  of  experts,  was  offi- 
cially approved  by  the  Post  Office  Department,  September  i, 
1920. 

The  Pitney-Bowes  Postage  Meter,  as  will  be  seen  from  the 
accompanying  illustrations  consists  of  two  units.  The  pedestal 
contains  the  electric  motor,  driving  mechanism,  feed  rollers, 
and  attachment  for  sealing  the  envelopes.  The  detachable 
meter  contains  a  counting  mechanism  that  not  only  records  each 
impression  as  the  envelopes  pass  through  the  machine,  but 
automatically  locks  the  device  against  further  operation  after 
the  number  of  impressions  that  have  been  paid  for  have  been 
exhausted. 

The  Meter  is  provided  with  a  printing  die  on  which  is  en- 
graved the  amount  of  postage,  permit,  and  meter  number  in 
combination  with  a  post-mark,  indicating  the  point  of  origin, 
date,  hour,  and  year.  The  type  in  the  post-mark  is  inter- 
changeable and  is  readily  accessible  to  the  operator.  The 
Meter  is  also  provided  with  a  door  that  is  locked  and  sealed  by 
the  clerk  in  the  Post  Office  after  having  been  set  for  the  number 
of  impressions  the  user  may  desire  to  purchase.  The  glass- 
covered  openings  in  the  door  and  front  of  the  Meter  enable 
the"  user  to  tell  at  a  glance  the  total  number  of  impressions  still 
available  for  use,  thus  affording  a  mechanical  audit  on  the  daily 
stamp  account.  The  cut  (p.  227)  is  a  facsimile  of  the  indicia  au- 
thorized by  the  Post  Office  Department  in  connection  with  ap- 


POST  OFFICE  AND  TELEGRAPH  229 

proved  mechanical  devices  designed  to  eliminate  the  use  of  adhe- 
sive stamps  on  mail  matter  on  which  the  amount  of  postage  is 
determined  by  count  instead  of  approximated  weight.  Sepa- 
rate meters  for  different  denominations  of  postage  printed  in 
colors  similar  to  those  used  on  adhesive  stamps  of  corresponding 
values,  are  supplied,  if  desired,  with  each  machine — red  for 
two-cent  postage,  green  for  one-cent  postage. 

Metered  mail  is  sealed,  post-marked,  stamped,  counted,  and 
faced  in  one  operation  at  the  rate  of  250  pieces  per  minute. 

Information  from  the  Postal  Laws  and  Regulations  of  the 
United  States 

Sec.     393.     Classification  of  Mail  Matter:    Mailable  matter  shall  be 
divided  into  four  classes — 
First,  Written  matter 
Second,  Periodical  publications 
Third,  Miscellaneous  printed  matter 
Fourth,  Merchandise. 

Sec.  396.  Prepayment  of  postage:  Postage  on  all  matter  must  be 
prepaid  by  stamps  at  the  time  of  mailing,  unless  other- 
wise provided  for  according  to  the  postal  laws. 

Sec.  398.  Mailable  matter  of  the  first  class  shall  embrace  letters, 
postal  cards,  and  all  matter  wholly  or  partly  in  writing. 
All  matter  sealed  or  otherwise  closed  against  inspection 
shall  be  treated  as  first-class  matter. 
A  drop  letter  is  one  addressed  for  delivery  at  the  office 
at  which  it  is  posted. 

Addresses  upon  postal  cards  may  be  either  written, 
printed,  or  affixed  thereto,  at  the  option  of  the  sender. 
Very  thin  sheets  of  paper  may  be  attached  to  the  card 
on  condition  that  they  completely  adhere  thereto. 

Sec.  411.  Second-class  matter:  Mailable  matter  of  the  second  class 
shall  embrace  all  newspapers  and  other  periodical  pub- 
lications which  are  issued  at  stated  intervals,  and  as  fre- 
quently as  four  times  a  year. 

Sec.  491.  Congressional  Record:  The  Congressional  Record,  or  any 
part  thereof,  or  speeches  or  reports  therein  contained, 
shall,  under  the  frank  of  a  Member  of  Congress,  or 
Delegate,  to  be  written  by  himself,  be  carried  in  the 


23o  OFFICE    PRACTICE 

mail  free  of  postage,  under  such  regulations  as  the  Post- 
master General  may  prescribe. 

Seeds  transmitted  by  the  Commissioner  (Secretary)  of 
Agriculture,  or  by  any  Member  of  Congress  or  Delegate 
receiving  seeds  for  distribution  from  said  department, 
together  with  agricultural  reports  emanating  from  that 
department,  and  so  transmitted,  shall,  under  such  regu- 
lations as  the  Postmaster  General  shall  prescribe,  pass 
through  the  mails  free  of  charge.  And  the  provisions  of 
this  section  shall  apply  to  ex-Members  of  Congress  and 
ex-Delegates  for  the  period  of  nine  months  after  the  ex- 
piration of  their  terms  as  Members  and  Delegates. 

Sec.  492.  Official  Correspondence  by  Members  of  Congress:  The 
Vice-President,  Members  and  Members-elect  of  and 
Delegates  and  Delegates-elect  to  Congress  shall  have  the 
privilege  of  sending  free  through  the  mails,  and  under  their 
frank,  any  mail  matter  to  any  Government  official  or  to 
any  person,  correspondence,  not  exceeding  four  ounces  in 
weight,  upon  official  or  departmental  business  (until  the 
first  day  of  December  following  the  expiration  of  their 
respective  terms  of  office). 

Sec.  493.  Special  grants  of  franking  privilege:  All  mail  matter 
carried  by  post  to  Lucretia  R.  Garfield,  widow  of  the  late 
James  A.  Garfield,  or  sent  by  her,  under  her  written  auto- 
graph signature,  will  be  conveyed  free  of  postage  during 
her  natural  life. 

All  mail  matter  sent  by  post  by  Frances  F.  Cleveland, 
widow  of  the  late  Grover  Cleveland,  under  her  written 
autograph  signature,  and  by  Mary  Lord  Harrison,  widow 
of  the  late  Benjamin  Harrison,  and  under  her  written 
autograph  signature,  will  be  conveyed  free  of  postage 
during  the  natural  life  of  each  respectively. 

(An  article  in  the  New  York  Times  during  the  month 
of  July,  1919,  stated  that  this  same  privilege  had  been 
granted  by  Congress  to  Mrs.  Roosevelt,  the  widow  of 
our  late  President,  Colonel  Theodore  Roosevelt.) 

Sec.  506.  Books,  pamphlets,  etc.,  for  the  blind:  Books,  pamphlets, 
and  other  reading  matter  in  raised  characters  for  the 
use  of  the  blind,  whether  prepared  by  hand  or  printed, 
in  single  volumes  not  exceeding  ten  pounds  in  weight,  or 
in  packages  not  exceeding  four  pounds  in  weight,  and  con- 
taining no  advertising  or  other  matter  whatever,  un- 


POST  OFFICE  AND  TELEGRAPH  231 

sealed,  and  when  sent  by  public  institutions  for  the 
blind,  or  by  public  libraries  as  a  loan  to  blind  readers, 
or  when  returned  by  the  latter  to  such  institutions  or 
public  libraries,  shall  be  transmitted  in  the  United  States 
mails  free  of  postage. 

Sec.  523.  Information  not  to  be  given:  Postmasters  and  others  in 
the  postal  service  shall  not  give  to  unauthorized  persons 
information  concerning  the  mail  matter.  .  .  .  Informa- 
tion concerning  money  orders  shall  not  be  given  to  any 
person  except  the  remitter  or  payee  or  the  agent  of  either 
or  to  a  representative  of  the  Post  Office  Department,  or 
under  special  instructions  from  the  department. 
Complete  or  partial  lists  of  names  of  patrons  shall  not 
be  furnished  by  postmasters,  post-office  employees,  or 
members  of  their  families,  but  lists  sent  to  postmasters 
may  be  corrected  by  the  crossing  off  of  the  names  of 
persons  to  whom  mail  cannot  be  delivered  or  forwarded, 
and  the  lists  shall  be  returned,  whether  corrected  or  not, 
when  stamps  are  sent  for  that  purpose.  New  names  or 
addresses  shall  not  be  added. 

Note:  Firms  wishing  to  revise  their  mailing  lists  sometimes  send  their  mailing 
list  to  the  Post  Office  Department  in  order  not  to  send  letters  and  cir- 
culars to  people  who  have  changed  their  address  and  to  whom  mail  can  not 
be  delivered.  In  this  case  the  postmaster  may  cross  off  any  name  not 
on  the  delivery  list  of  his  post  office,  but  he  nor  any  other  employee  can 
not  add  any  name  or  address  as  stated  in  the  above  postal  law. 

Sec.  526.  Matter  unsealed  or  in  bad  order:  Mail  matter  of  the 
first  class  deposited  in  or  received  at  any  post  office  un- 
sealed or  in  a  mutilated  or  otherwise  bad  condition  shall 
be  stamped  or  marked  with  the  words  "Received  un- 
sealed," or  'Received  in  bad  order,'  as  the  case  may  be, 
and  be  officially  sealed  before  being  forwarded  or  delivered. 

Sec.  529.  Times  for  closing  mails:  Mails  at  first-class  post  offices 
shall  be  closed  not  more  than  one  hour,  and  at  all  other 
offices  not  more  than  half  an  hour,  before  the  schedule 
time  of  departure  of  trains,  unless  such  departure  is  be- 
tween the  hours  of  9  P.M.  and  5  A.M.,  when  they  may  be 
closed  at  9  P.M.  At  fourth-class  offices  day  mails  should 
not  be  closed  until  it  becomes  necessary,  allowing  a 
reasonable  time  for  delivery  at  the  train  or  to  the  carrier 
on  star  routes. 

Sec.    546.     Misdirected  matter  at  mailing  office:    Postmasters  and 


232  OFFICE    PRACTICE 

• 

others  in  the  postal  service  shall  not  attempt  to  correct 
post-office  addresses  on  mail  matter  except  as  provided 
in  this  section  and  in  sections  595  and  597. 

2.  Mail  that  is  misdirected  as  to  post-office  name,  unless 
addressed  to  a  known  county  and  state,  should  not  be 
dispatched    except    upon    reasonable    assurances   to    its 
destination  (in  which  case  it  should  be  indorsed  to  show 
by  what  post  office  the  address  is  supplied),  but  should 
be  returned  to  the  sender,  if  his  name  and  address  are 
known,    with    the   words    stamped    or   written    thereon, 
"Returned  for  better  direction,"  together  with  such  in- 
formation as  the  mailing  office  may  have  as  to  the  correct 
post-office  name.    The  stamps  originally  affixed  to  such 
matter  will,  when  it  is  again  presented  for  mailing,  be 
accepted  in  payment  of  postage  to  the  amount  of  their 
face  value. 

3.  If  the  name  of  the  sender  is  not  known  and  the  post- 
office  address  can  not  be  supplied  with  reasonable  cer- 
tainty at  the  mailing  office,  the  mail  shall  be  disposed 
of  as  unmailable.     (See  Sec.  549.) 

Sec.  617.  Letters  "Opened  by  or  through  mistake":  When  a  letter 
intended  for  one  person  is  delivered  to  another  of  the 
same  name  and  returned  by  him,  the  postmaster  should 
reseal  the  letter  in  the  presence  of  the  person  who  opened 
it  and  request  him  to  write  upon  it  "Opened  by  me 
through  mistake,"  and  sign  his  name;  the  letter  should 
be  then  replaced  in  the  post  office. 

Sec.  851.  Rate  on  special-delivery  matter:  The  charge  for  special 
delivery  of  mail  matter  shall  be  10  cents  for  each  piece, 
to  be  prepaid  by  a  special-delivery  stamp,  or  by  10  cents 
in  ordinary  postage  stamps,  affixed  thereto  in  addition 
to  the  lawful  postage.  If  ordinary  stamps  are  used,  the 
words  "Special  delivery"  should  be  plainly  written 
directly  under,  but  never  on,  the  stamps. 

Sec.  1123.  Offices  upon  which  orders  may  be  drawn:  Money  orders 
shall  be  drawn  on  the  domestic  form  only  upon  all  money- 
order  post  offices  in  the  United  States  and  its  outlying 
possessions  or  dependencies,  including  the  Canal  Zone 
and  Philippine  Islands,  upon  the  United  States  postal 
agency  at  Shanghai,  China,  and  upon  offices  in  foreign 
countries  with  which  the  United  States  transacts  money- 
order  business  on  the  domestic  basis. 


POST  OFFICE  AND  TELEGRAPH  233 

Sec.  1128.  A  money  order  shall  not  be  issued  for  more  than  one 
hundred  dollars,  and  fees  for  domestic  money  orders  shall 
be  as  follows — to  wit:  (Note:  here  follows  the  fees  for 
domestic  money  orders. 

FOR  MONEY   ORDERS 

From  $  o.oi  to  $     2.50.  ..* 3  cents 

"       $  2.51  "    $     5.00 5       " 

"       $  5.01  "    $  10.00 8       " 

"         $10.01      "      $    20.00 10         " 

'      "         $20.01      "     $    30.00 12         " 

"         $30.01      "     $    40.00 15         " 

"  $40.01  "    $  50.00 18  " 

"  $50.01  "    $  60.00 20  " 

"  $60.01  "    $  75-00 25  " 

"  $75.01  "    $100.00 30  " 

If  one  desires  to  send,  say,  $110.00  by  money  order,  a 
money  order  is  made  out  for  $100.00  and  another  money 
order  is  made  out  for  $10.00;  thus  two  separate  money 
orders  must  be  made  out.) 

Sec.  1131.  Applications  for  money  orders:  The  application  for  a 
money  order  shall  be  made  on  the  printed  form  (No.  6001), 
showing  the  particulars  required  to  be  stated  in  the 
money  order  and  coupon  or  advice. 

Sec.  1153.  Payment  to  others  than  persons  named:  A  money  order 
shall  not  be  paid  to  a  second  person  without  a  written 
transfer  or  indorsement  of  the  same  to  such  person,  by 
the  payee,  in  the  prescribed  form  provided  on  the  order. 

PURCHASER  MUST  SEND  ORDER  AND  COUPON  TO  PAYEE 

After  the  clerk  makes  out  the  money  order  he  retains  the  appli- 
cation blank  for  the  files  of  the  post  office  and  gives  the  money  order 
to  the  person  who  made  out  the  application.  The  money  order  is 
sent  to  the  person  to  whom  the  applicant  owes  money. .  The  small 
receipt  is  retained  by  the  sender. 

Note:  Dr.  printed  after  the  name  of  a  firm  to  whom  you  owe  money  means 
you  are  indebted  to,  or  owe  money  to,  that  person  and  is  never  to  be 
considered  as  part  of  the  firm  name. 

A  common  error  among  children  is  to  assume  that  Dr.  after  a  firm  name 
on  a  merchandise  purchase  invoice  is  a  part  of  the  firm  name  and  in 
making  out  a  money-order  blank  often  add  Dr.  to  the  firm  name;  for 
example:  Henry  E.  Smith,  Dr. 


Form  3STo.  6001 


THIRD  ASSISTANT  POSTMASTER  GENERAL       Stamp  of  Issuing  Office 
DIVISION  OF  MONEY  ORDERS 

The  Postmaster 
will  insert 


here 

the  office  drawn  on,  when  the  office  named  by  the 


remitter  in  the  body  of  this  application  is  not  a  Money  Order  Office. 

Spaces  above  this  line  are  for  the  Postmaster's  record,  to  be  filled  in  by  him 

Application  for  Domestic  Money  Order 

Spaces  below  to  be  filled  in  by  purchaser,  or*  it  necessary, 
by  another  person  for  him 

Amount 

Dollars »  Cents 


Order  ol  / 

(Name  of  person  or  firm  foaftohom  order  ia  intended) 


Whose    | 

Addressl  O 

is       |  No ^-X Street 

Post   \  ^ 

Office  I  V?  - -  -     - 

v.u*w  '    ~"  """"  >  ~™ " 

State __ 


Sentby         

(Name  of  Sender) 


Address! 
sender  J  No Street 

PURCHASES  MUST  SEND  ORDER  AND  COUPON  TO  PAYEE 

C5— 7155 
SAMPLE    OF    DOMESTIC    MONEY   ORDER 


234 


POST  OFFICE  AND  TELEGRAPH  235 

Assignment: 

Make  out  applications  for  domestic  money  orders  in  favor 
of  the  following  creditors  for  the  amount  due  them  by  The 
McGill  Company,  210  Bedford  Street,  Stamford,  Conn.  Make 
and  file  a  carbon  copy. 

List  of  Creditors 

Amount  Due 

1.  Leonard,  Walter                        Bangor,  Maine  $150.00 

2.  Thompson,  Jerome                    Nashua,  New  Hampshire  75-OO 

3.  Ober,  Theodore                          Cheyenne,  Wyoming  no.oo 

4.  Quinlan,  Frank  R.                     Bangor,  Maine  50.75 

5.  Murphy  &  Henderson              Niagara,  New  Ycrk  25.80 

6.  McNulity  &  Bros.                     Frankfort,  Kentucky  7.75 

7.  Evans,  Samuel                           Ogden,  Utah  13 .50 

8.  MacNeil,  Thomas  G.                Salem,  Oregon  .79 

9.  Maguire,  George  D.                  Buffalo,  New  York  6.80 

10.  Wilson,  Sargent  Co.  (The)  Louisville,  Kentucky  .98 

11.  MacDonald  &  Rich  (Inc.)  Providence,  Rhode  Island  1.25 

12.  Peterson  &  Jamesson  Tampa,  Florida  7.63 

13.  Upton,  William  H.  &  Bros.  Richfield,  Utah  1.35 

14.  Vincent,  Charles  &  Co.  Baltimore,  Maryland  .50 

15.  Silverman,  George  H.  Boise,  Idaho  3.68 

Telegrams 

Telegrams  are  messages  sent  by  telegraph  within  the  borders 
of  a  country  or  to  adjacent  countries  not  totally  separated  by 
large  bodies  of  water  as,  the  United  States,  Canada,  and  Mexico. 

All  messages  written  must  be  in  clear,  concise  language.  As 
charges  are  by  the  word,  messages  should  be  sent  in  as  few  words 
as  possible,  but  must  clearly  state  the  desired  meaning. 

To  guard  against  mistakes  or  delays,  the  sender  of  a  message 
should  order  the  message  repeated,  that  is,  telegraphed  back  to 
the  originating  office  for  comparison. 

The  charge  for  this  is  one-half  the  unrepeated  message  rate 
in  addition.  Messages  will  be  delivered  free  within  one-half 
mile  of  the  company's  office  in  towns  of  5000  population  or 
less,  and  within  one  mile  cf  such  office  in  other  cities  or  towns. 


236  OFFICE    PRACTICE 

There  are  four  different  classes  of  service.  The  full-rate 
messages  are  paid  for  on  the  basis  of  a  charge  for  the  first  ten 
words  and  an  additional  charge  for  each  additional  word  in 
excess  of  ten  words.  They  are  the  messages  which  most  of  us 
send  and  which  are  transmitted  immediately.  Night  messages 
are  accepted  up  to  2.co  A.M.  at  reduced  rates,  to  be  sent  during 
the  night  and  delivered  not  earlier  than  the  morning  of  the 
next  ensuing  business  day. 

Day  Letters:  A  deferred  day  service  at  rates  lower  than  the 
standard  telegram  rates  as  follows:  One  and  one-half  times  the 
standard  night  letter  rate  for  the  transmission  of  50  words 
or  less,  and  one-fifth  of  the  initial  rates  for  each  additional 
10  wrords  or  less. 

Day  Letters  must  be  written  in  plain  English.  Code  lan- 
guage is  not  permissible.  The  day  letters  may  be  delivered 
by  the  company  by  telephoning  the  same  to  the  addressee, 
and  such  delivery  shall  be  a  complete  discharge  of  the  obligation 
of  the  company. 

Night  letters  are  accepted  up  to  2.00  A.M.  for  delivery  on 
the  morning  of  the  ensuing  business  day  at  rates  still  lower 
than  the  standard  night  message  rates. 

Night  letters  should  be  written  in  plain  English.  Code  lan- 
guage is  not  permissible. 

Night  letters  may,  at  the  option  of  the  telegraph  company, 
be  mailed  at  destination  to  the  addressees,  and  the  company 
shall  be  deemed  to  have  discharged  its  obligation  in  such  cases 
with  respect  to  delivery  by  mailing  such  night  letters  at 
destination,  postage  prepaid. 

In  a  telegram  no  salutation  as  "Gentlemen,"  or  "Dear  Sir," 
and  no  complimentary  close  as  "Yours  truly,"  or  "Yours 
respectfully,"  are  used.  Telegrams  must  be  typewritten;  three 
copies  being  typed;  the  original  is  sent  to  the  telegraph  com- 
pany, the  first  carbon  copy  is  filed,  while  the  second  carbon  copy 
is  retained  by  the  accounting  department. 

Transfer  of  money  by  telegraph  orders,  both  domestic  and 


POST  OFFICE   AND  TELEGRAPH  237 

foreign,  are  accepted  by  telegraph  companies  for  the  immediate 
transfer  of  money  by  telegraph. 


Charge  to  the  account  cf 


Send  the  following  message,  subject  to  the  term* 
on  back  hereof,  which  are  hereby  agreed  to 

Assignment: 

Read  the  above  directions  and  decide  upon  the  least  number 
of  words  in  which  you  can  express  the  necessary  data  for  your 
telegraph  message.  When  you  have  the  message  in  clear  and 
concise  language,  write  it  on  an  official  yellow  telegraph  blank. 
This  message  is  to  be  written  on  the  typewriter,  also  two  car- 
bon copies.  File  the  copy  for  reference. 

1.  Studewell  &  Co.,  543  Asylum  Street,  Hartford,  Conn.     We  are 
unable  to  fill  your  order  for  groceries  before  the  I5th  of  this 
month.     May  we  substitute  goods  we  have  on  hand  which  are 
similar  to  the  ones  you  ordered?     Wire  response. 

2.  H.  Jackson  &  Co.,  Atlantic  City,  New  Jersey.   Groceries  ordered 
on  the  5th  of  this  month  have  not  yet  arrived  from  our  warehouse. 
Shall  we  ship  your  order  next  week? 

3.  Congress  Hall  Hotel,  Washington,  D.  C.     Wire  our  salesman, 
Mr.  Harris,  to  go  to  Boston,  Mass,  and  call  on  Bowen  Bros,  for 
order  of  Mdse. 

4.  Brown  &  Thompson,  $i2-2nd  Street,  Louisville,  Kentucky.   Will 
complete  order  to-day  and  will  ship  via  Penn.  R.  R.  to-morrow. 

5.  H.  Wenkenbach  &  Sons,   iO5o-5th  Street,  Detroit,  Mich.     We 
are  wiring  our  factory  to  ship  direct  and  make  a  rush  order  of 
your  order  of  Monday. 

6.  H.  Garrison,  2001  Tremont  Street,  Boston,  Mass.     Quote  us  on 
40  bbls.  N.  S.  Flour  via  N.  Y.  N.  H.  &  H.  R.R.     Wire  us  when 
delivery  can  be  made. 

7.  J.  McNulty,  2124-ioth  Street,  Chicago,  111.     Have  not  received 


238  OFFICE    PRACTICE 

the  remittance  promised  us  on  the  loth.     We  will  send  Sight 
Draft  tomorrow. 

8.  Fessenden  &  Grant,  1002  Main  Street,  Atlanta,  Georgia.    Mdse 
ordered  is  being  packed  and  you  will  receive  same  within  a  few 
days.    Will  send  by  freight. 

9.  Henry  Walters,  Hotel  Starler,  Buffalo,  New  York.     One  of  our 
salesmen  has  just  been  elected  {resident  of  the  Traveling  Sales- 
men's Association,  at  their  Convention  being  held  at  the  above 
address.     Send  him  a  congratulatory  message. 

"We  have  just  heard  of  your  success  so  well  deserved  and  so 
splendidly  won.  Your  fellow  salesmen  have  shown  their  appre- 
ciation of  their  confidence  in  your  ability  to  make  their  asso- 
ciation even  more  successful  than  it  is  at  present.  You  have 
our  warmest  congratulations  and  all  good  wishes." 
10.  Peterson  &  Bushnell,  456  Market  Street,  Philadelphia,  Penn. 
Wire  us  when  we  may  expect  the  invoice  of  mdse.  we  ordered  by 
mail  last  Monday.  Cancel  our  order  if  you  cannot  send  the 
mdse  to  us  by  Saturday  of  this  week  at  the  latest. 

Note:  Send  Nos.  i,  3,  4,  and  7  as  full-rate  messages. 
Send  Nos.  2;.  5,  and  6  as  night  messages. 
Send  Nos.  8  and  10  as  day  letters. 
Send  No.  9  as  a  night  letter. 

Mechanical  Devices 

Many  mechanical  devices  were  used  during  the  world  war. 
In  the  offices  in  Washington,  D.  C.,  a  device  was  used  to  re- 
place the  telephone.  A  message  was  written  on  a  pad  with  a 
pen  electrically  connected  with  the  telephone  wire,  with  a 
similar  pen  in  the  office  to  which  the  message  was  to  be  sent. 
Answers  to  these  messages  were  received  by  this  same  method. 

In  the  War  Risk  Insurance  office  the  clerical  work  was  nearly 
all  done  by  machinery.  The  amount  of  each  check,  the  name 
of  the  person  to  whom  it  was  to  be  paid,  the  address  and  the 
allotment  number  were  placed  on  a  plate  of  an  addressing 
machine.  The  checks  were  then  printed  ten  in  a  sheet  with  a 
different  entry  on  each  check. 

The  checks  were  signed  by  a  master  pen,  guided  by  the 
operator,  and  it  controlled  and  directed  the  strokes  of  the 


POST  OFFICE  AND  TELEGRAPH  239 

other  nine  pens,  thus  signing  the  ten  different  checks  with 
one  writing  of  the  signature. 

The  slitting  machine  cut  the  sheets  of  the  ten  checks,  the 
moistening  machine  moistened  and  sealed  the  envelopes.  The 
bundle  tier  automatically  tied  them  in  bundles  and  then  the 
checks  were  ready  for  mailing  to  the  dependents  of  the  United 
States  soldiers  and  sailors. 

Besides  those  already  mentioned,  offices  have  automatic  en- 
velope sealers  which  are  simple  in  construction  and  operation. 
The  envelopes  are  placed  one  after  the  other  over  a  feed  plate. 
A  crank  is  turned  and  the  motion  of  the  machine  automatically 
moistens  the  flaps  and  quickly  carries  the  letters  through  the 
rollers  in  a  practically  unbroken  stream.  The  moistening  de- 
vice is  a  metal  cone  which  always  brings  a  uniform  supply  of 
water,  thus  every  envelope  is  sure  to  be  properly  sealed. 

The  stamp  affixer  is  a  handy  mechanical  device.  It  is  a 
portable  safe  for  the  office  postage  stamps.  By  a  single  pressure 
of  the  plunger  the  device  performs  five  different  hand  opera- 
tions: picking  up,  moistening,  severing,  attaching,  and  counting 
the  stamps  in  less  time  than  required  for  each  operation  when 
stamps  are  attached  by  hand.  The  register  on  the  stamp 
affixer  automatically  counts  every  stamp  as  it  is  attached  to 
the  envelope  or  package,  thus  giving  an  absolute  check  upon 
postage  expenditure  and  eliminating  the  necessity  of  counting 
each  day's  mail. 

The  Automatic  Electric  Typewriter  such  as  the  Hooven  is 
used  for  sending  out  form  letters  in  large  quantities.  This 
automatic  typewriter  performs  every  operation  exactly  as  if  it 
were  hand  operated  rather  than  electrically,  but  does  it  five  or 
six  times  as  rapidly  as  by  hand.  The  automatic  typewriter 
is  driven  by  a  i-io  horse-power  motor,  and  is  controlled  by 
means  of  a  paper  stencil  which  contains  the  form  of  the  letter 
to  be  written  in  quantities.  This  stencil  is  similar  to  the  stencil 
used  on  a  player-piano. 

The  paper  stencil  which  operates  the  automatic  typewriter 


240  OFFICE   PRACTICE 

is  made  by  striking  the  keys  of  the  perforator,  which  has  the 
same  keyboard  as  any  standard  typewriter.  When  the  keys 
are  struck,  instead  of  printing,  the  perforator  cuts  holes  for  the 
characters  desired.  This  stencil  when  completed  is  cemented 
into  an  endless  band  and  placed  over  a  drum  in  the  rear  of  the 
automatic  typewriter,  and  then  any  number  of  circular  letters 
may  be  typewritten  from  the  stencil. 

The  Addressograph 

The  best-known  device  for  every  name-writing  purpose  is  the 
Addressograph.  It  is  entirely  automatic;  it  is  not  necessary 
to  feed  by  hand  or  arrange  any  matter  to  be  addressed,  as  the 
envelopes  are  automatically  placed  at  the  printing  point  and 
addressed  at  the  rate  of  5000  an  hour,  then  they  are  automati- 
cally stacked  in  regular  order  in  the  receiver.  After  printing 
the  address  plates  are  automatically  refiled  in  their  original 
order  in  their  original  filing  drawer  beneath  the  machine. 
These  metal  address  plates  always  print  legibly,  thus  preventing 
costly  errors  and  loss  or  delay  in  shipping  or  mailing. 

Magazines  and  newspapers  are  not  always  enclosed  in  wrap- 
pers. A  lister  for  mailer  strips,  automatically  feeds  a  narrow 
strip  of  paper  from  a  roll,  imprints  the  subscribers'  names,  ad- 
dresses and  the  expiration  dates  on  it,  at  the  rate  of  5000  an 
hour,  and  rewinds  the  strip  on  a  second  roll.  This  addresso- 
graphed  strip  is  then  inserted  into  a  mailer  which  rapidly  cuts 
and  pastes  the  individual  address  on  publications. 

In  the  War  Risk  Insurance  Bureau,  Washington,  D.  C.,  and 
the  mailing  departments  of  large  mail  order  concerns,  they  use 
an  addressing  machine  for  their  mailing  list.  Address  plates 
are  made  on  stencils  that  are  cut  on  the  typewriter.  These 
plates  are  arranged  alphabetically  and  filed.  When  needed  for 
use  in  mailing  envelopes,  wrappers  of  magazines  or  newspapers, 
they  are  fed  into  the  machine  and  after  addressing  the  envelopes 
are  replaced  in  the  file  cabinet  to  be  kept  for  future  use. 


CHAPTER  TEN 
THE  STORY  OF  THE  ADDING  MACHINE 

Supplementary  Exercises  for  Class  Use 

THE  adding  machine  has  removed  the  drudgery  from  book- 
keeping and  has  made  that  vocation  popular. 

Before  trial  balances  or  even  debits  and  credits  were  thought 
of  man  sought  some  escape  from  the  drudgery  of  casting  up 
figures  "in  their  heads."  Century  after  century,  through  era 
after  era  of  constantly  shifting  civilization,  the  search  went  on. 
At  different  times  the  problem  has  occupied  the  minds  of  the 
great  scholars  of  every  race — the  Egyptians,  the  Assyrians,  the 
Chaldeans,  the  Greeks,  the  Romans,  and  the  Chinese  have  all 
added  to  the  study  and  investigation  of  the  problem,  and  yet 
a  solution  seemed  no  nearer  at  the  middle  of  the  last  century 
than  it  had  been  at  the  very  beginning.  These  ages  of  striving 
for  an  idea  merely  indicated  the  tremendous  need  that  has 
always  existed  for  some  device  to  relieve  the  human  brain 
from  its  calculations. 

Before  mankind  knew  enough  to  put  its  figures  in  columns, 
simple  calculations  were  formed  by  placing  shells  and  pebbles 
on  the  ground  to  represent  numerals.  The  stone-age  man  used 
the  side  of  a  cliff  for  his  ledger  sheet  and  a  chisel  and  hammer 
for  his  pen.  It  is  not  at  all  unlikely  that  when  Noah  built  the 
ark  he  chiseled  the  calculations  of  his  plans  on  tablets  of  stone. 
Such  were  a  few  of  the  problems  met  by  man  before  the  days 
of  the  deluge  when  the  human  brain  revolved  at  low  speed. 
The  first  adding  machine  used  by  man  was  "four  fingers  and  a 

[  341 1 


242  OFFICE   PRACTICE 

thumb/'  one  hand  being  used  to  furnish  the  units  of  calcula- 
tion, while  the  other  was  used  as  the  counter.  Because  of  this, 
man's  sum  of  things  was  at  first  limited  to  five.  There  was  no 
way  to  count  a  half-a-dozen.  Present-day  explorers  tell  us  that 
there  are  certain  African  tribes  who  still  know  no  numeral 
beyond  five,  and  have  no  word  in  their  language  to  express  a 
higher  number. 

The  finger  and  thumb  adding  machine  was  constantly  im- 
proved to  meet  the  needs  of  the  race.  One  important  step  in 
the  development  was  the  adoption  of  both  hands  for  units  in- 
stead of  one.  Historians  have  pointed  out  in  this  connection 
that  man's  possession  of  10  fingers  accounts  for  10  being  used 
as  the  basis  of  our  numerical  system,  and  has  given  to  us  our 
present  decimal  system.  It  must  not  be  thought  finger  reckon- 
ing represented  a  merely  crude  method  of  counting.  It  was 
highly  developed  by  one  race  of  people  who  could  carry 
calculation  into  the  hundreds  of  thousands,  using  practically 
the  same  system  as  that  which  has  made  the  modern  add- 
ing and  calculating  machine  possible.  The  Egyptians  were  the 
first  to  develop  any  really  efficient  system  of  numerals  and  their 
mathematical  application. 

Babylon  was  the  foremost  commercial  center  of  the  ancient 
world,  and  the  early  Babylonian  inscriptions  show  that  they 
wrote  numbers  from  left  to  right  as  we  do  to-day,  while  the 
Egyptian  and  the  Chinaman  still  worked  up  and  down.  At 
about  the  time  Abraham  took  his  son  Isaac  into  the  mountains 
to  offer  him  up  as  a  sacrifice,  the  Babylonians  invented  a  deci- 
mal system.  The  records  of  Babylonian  business  houses  dated 
at  about  this  time  are  still  in  existence.  They  were  made  with 
a  sharp  stylus  on  pieces  of  soft  clay  which  were  moistened  to 
get  a  good  writing  surface  and  made  permanent  in  the  drying 
process.  Babylonian  business  having  developed  more  rapidly 
than  in  other  parts  of  the  world,  they  had  difficulty  in  keeping 
their  accounts.  A  crude  form  of  accounting  machine  was  made 
up  by  the  use  of  a  record  board  and  pebbles  being  shifted  about 


STORY  OF  THE  ADDING  MACHINE          243 

on  a  rude  surface.  Excavations  in  Chaldea  have  brought  to 
light  the  original  loose  leaf-ledger.  It  was  nothing  more  or  less 
than  rows  of  shelves  rilled  with  wide-mouthed  earthen  jars, 
each  of  the  jars  containing  these  baked  clay  tablets. 

An  improvement  in  the  original  reckoning  board  was  made 
by  a  Greek  named  Abax.  Later  we  have  the  Abacus  arranged 
by  the  Romans.  Later  on  this  was  improved,  the  principle 
adopted  being  that  of  an  open  frame  strung  with  horizontal 
wires  placed  at  equal  distances  strung  with  perforated  pebbles. 
The  swan  pan  used  by  certain  Oriental  peoples  to-day  is  very 
little  different  from  the  original  Abacus.  Little  progress  could 
be  made  in  bookkeeping  methods  until  the  present  system  of 
numerals  came  into  use  and  numbers  were  written  in  columns. 
The  Italians  seemed  to  have  developed  this  particular  art  of 
accounting.  At  about  the  time  the  Mayflower  sailed  for 
America  there  was  produced  the  first  mechanical  aid  to  calcu- 
lation in  Naples.  This  was  Napier's  rod,  consisting  of  strips 
of  bone  bearing  numbers  on  the  surface  which  could  be  brought 
into  fixed  combinations  and  aided  in  many  calculations.  Later 
developments  of  this  invention  gave  us  the  wonderful  slide 
rule  with  all  its  variations  that  is  used  to-day  by  draftsmen, 
engineers,  surveyors,  and  craftsmen  of  many  sorts. 

At  about  this  time  the  principle  of  dial  wheels  bearing  figures 
on  their  circumference  was  invented  by  a  young  Frenchman, 
Blais  Pascal,  giving  various  combinations  of  numbers  that 
could  be  brought  together.  There  has  never  been  any  parti- 
cular difficulty  in  accomplishing  mere  mechanical  calculations 
since  the  days  of  Pascal;  the  cyclometer  on  a  bicycle,  the  counter 
on  a  printing  press,  and  the  fare  register  in  a  street  car,  were 
all  made  possible  by  this  device  and  are,  in  a  small  way,  adding 
machines  or  calculators. 

The  first  organized  attempt  to  produce  a  calculating  ma- 
chine was  made  by  Charles  Babbage,  a  professor  of  mathe- 
matics of  Cambridge  University,  early  in  1800.  The  British 
government  appropriated  almost  a  hundred  thousand  dollars 


244  OFFICE   PRACTICE 

for  his  experiments,  but  the  device  never  worked.  Follow- 
ing the  work  of  Babbage  a  host  of  experiementers  sprang  up  all 
over  Europe  and  considerable  progress  was  made  towarddevising 
a  means  of  calculation  for  a  scientific  purpose. 

Not  until  late  in  the  I9th  century  was  the  first  adding  'and 
recording  machine  that  became  commercially  possible  com- 
pleted by  an  obscure  New  York  banker  named  William  Seward 
Burroughs.  In  the  bank  this  young  man  learned  that  nine- 
tenths  of  the  work  that  is  done  by  gentlemen  who  toil  indoors 
at  nice  clean  occupations  had  to  do  with  figures,  and  that 
three-fourths  of  the  commercial  side  of  figures  is  addition,  and 
that  the  human  brain  being  an  imperfect  tool  is  incapable  of 
sustained  effort  without  accident.  Finally  when  he  analyzed 
this  matter  he  discovered  that  about  one-half  his  time  was 
occupied  in  guarding  against  errors  and  half  of  the  remaining 
half  in  hunting  for  errors  that  all  his  precautions  had  not 
prevented. 

Adding  machines  are  divided  into  two  general  classes.  The 
first  is  the  recording  machine  which  records  the  result  of  the 
computation  on  a  sheet  or  strip  of  paper,  as  well  as  accumu- 
lating the  result  in  the  dial  wheels.  From  the  recording  or 
"listing"  machine  has  developed  the  bookkeeping  machine. 
The  second  classification  is  the  key-driven  or  calculating  ma- 
chine. The  difference  between  the  key-driven  and  recording 
machine  is,  as  the  name  would  indicate,  that  as  soon  as  the 
key  is  depressed  and  released  the  calculation  is  completed.  '1  he 
recording  or  listing  machine  further  divides  itself  into  two 
general  classes  or  types;  the  standard  full  keyboard,  consisting 
of  keys  arranged  in  columns  with  alternative  sections  colored 
black  and  white  keys  conforming  to  the  decimal  system  of 
numbers,  and  the  10  key  machines,  such  as  the  adding  ma- 
cines  in  connection  with  typewriting  machines,  etc.  1  he  key- 
driven  or  calculating  machines  are  of  two  general  types;  the 
one  operated  by  the  simple  depression  of  the  keys  and  the 
other  operated  by  a  crank  or  lever  motion. 


STORY  OF  THE  ADDING  MACHINE          245 

There  are  a  number  of  machines  of  each  type  under  various 
names  manufactured.  These  machines  each  perform  practi- 
cally the  same  functions  as  other  machines  of  their  class.  It 
must  be  remembered  that  while  the  original  types  of  adding 
machines  were  intended  to  do  all  classes  of  work,  experience 
has  shown  that  certain  types  of  adding  or  calculating  machines 
will  perform  a  certain  character  of  work  better  than  machines 
of  a  different  type.  For  illustration,  4334  can  be  multiplied  by 
4334  on  the  listing  or  recording  type  of  machine,  but  the  entire 
calculation  can  be  made  upon  the  key-driven  or  calculating 
machine  almost  before  it  is  set  up  ready  for  multiplication  on 
the  other  type  of  machine.  Consequently  the  business  man 
analyzes  carefully  his  figure  work  and  applies  to  that  work  the 
machine  which  is  best  fitted  to  his  needs.  For  instance,  he 
does  not  use  a  listing  or  recording  machine  to  do  the  work  which 
can  be  better  accomplished  with  the  calculating,  or  vice  versa. 
For  certain  kinds  of  work  where  checking  is  necessary  and  a 
record  should  be  preserved  only  a  recording  or  listing  machine 
can  be  used  advantageously,  while  on  other  types  of  adding, 
excepting  on  small  numbers  which  is  merely  the  checking  of 
another  addition  such  as  sales  slips,  frequently  the  key-driven 
or  calculating  is  best  adapted.  This  also  follows  in  checking 
invoices  and  pay-roll  work  where  the  processes  of  multiplication 
and  division  make  the  key-driven  machine  best  suited  for  the 
work.  In  certain  types  of  multiplication  and  division,  where 
the  result  needs  to  be  carried  out  beyond  the  fifth  decimal 
place,  it  frequently  happens  that  the  crank-operated  calculator 
is  best  suited  for  the  work.  Any  calculation  that  is  possible  with 
pencil  and  paper  can  be  made  on  the  adding  or  calculating 
machine,  whether  it  is  figuring  interest,  calculating  discount,  or 
the  extraction  of  roots;  the  process  is  addition,  multiplication, 
subtraction  or  division.  A  close  analysis  of  these  four  proc- 
esses reduced  all  figure  work  to  addition. 

As  was  shown  before,  10  being  the  basis  of  our  numerical 
system,  all  our  figure  work  is  based  upon  10.  The  adding  or 


246  OFFICE    PRACTICE 

calculating  machine  offers  no  new  principle  of  calculation,  but 
follows  out  closely  the  ringer  methods  of  the  ancients,  handling 
numbers  only  in  batches  of  10  as  per  illustration. 

8  x 

9  x 
7  x 
6 

9  x 

4  x 
5 

6  x 

4 
9  x 

5 

72 

9  and  5  are  14,  one  10  and  4  to  carry;   marking  the  10  we  have 
4  and  4  are  8  and  6  are  14,  one  10  and  4  to  carry;   marking  the 

10  again  we  have  4  and  5  are  9  and  4  are  13,  one  10  and  3  to 
carry;    marking  the  10  we  have  3  and  9  are  12,  one  10  and  2  to 
carry;   marking  the  10  we  have  2  and  6  are  8  and  7  are  15,  one 
10  and  5  to  carry;   marking  the  10  we  have  5  and  9  are  14,  one 
10  and  4  to  carry;    marking  the  10  we  have  4  and  8  are   12. 
Mark  the  10  and  carry  the  2  to  the  bottom  of  the  problem  and 
counting  the  lo's  we  find  that  the  sum  of  the  column  of  figures 
is  72,  and  at  no  time  did  we  carry  more  than  10  numerals  in 
the  mind  at  one  time.     Therefore  it  is  easy  to  see  that  the 
adding  machine  follows  the  principles  of  calculation  used  from 
the    beginning,   only   relieving   the   mind   of  the   drudgery   of 
addition  and  the  fear  that  some  unwitting  error  may  creep  in 
and  undo  the  work  of  hours. 

Most  companies  manufacturing  equipment  of  this  character 
offer  only  the  listing  machine  for  all  types  of  work  or  the  cal- 
culating machine  to  handle  all  types  of  work. 


STORY  OF  THE   ADDING   MACHINE          247 
Some  Uses  for  Adding  and  Calculating  Machines 

DAILY    USES 

1.  Proving  Daily  Postings. 

2.  Daily  Ledger  Balance. 

3.  Daily  Cash  Balance. 

4.  Preparing  Deposit  Slip  in  Duplicate. 

5.  Daily  Recapitulation  of  Sales — Cash,  Credit,  C.  O.  D.,  etc. 

6.  Checking  Invoices  and  Frieght  Bills. 

7.  Figuring  Discounts. 

8.  Comparing  Commissions. 

9.  Summary  of  Day's  Recipts  and  Disbursements. 

10.  Figuring  Estimates. 

11.  Ledger  Posting. 

12.  Listing   and   adding  yardage,   feet,   or  weight  of  goods   packed, 

received  or  shipped. 

13.  Listing    and    adding   hours    and    minutes,    tons,    and    cwt.,    feet, 

inches,  and  fractions  of  inches,  and  other  compound  numbers. 

14.  Posting  Perpetual  Inventory  Records. 

WEEKLY    USES 

15.  Preparing  Weekly  Pay  Roll. 

16.  Making  out  Pay  Envelopes. 

17.  Preparing  Weekly  Summaries  of  Labor  Distributions. 

18.  Making  Weekly  Summaries  of  Sales  by  Departments,  by  Sales- 

men, by  Territories,  by  Ledgers,  by  Commodities,  or  by  any 
desired  division. 

19.  Analysis  of  Accounts  Receivable. 

20.  Analysis  of  Accounts  Payable. 

21.  Handling  Petty  Cash  Expenditures. 

22.  Compiling  Change  Sheet,  for  Pay  Roll. 

23.  Comparative  Statements  of  Operating  Expenses  and  Earning.;. 

24.  Proving  Traveler's  Expense  Reports. 

MONTHLY    USES 

25.  Taking  offTrial  Balance  Figures,  Debits  and  Credits. 

26.  Footing  Ledger  Accounts  preparatory  to  taking  off  Trial  Balance. 

27.  Reconciling   Check    Book    Balance   with    Bank    Balance,    listing 

number  and  amount  of  each  outstanding  check. 

28.  Making    Monthly    Statements,    giving    months,    date,    total    of 

debits,  total  of  credits.     Balance  and  special  terms  or  char- 
acters if  required. 


248  OFFICE    PRACTICE 

29.  Monthly  Summaries  of  Merchandise  Sales  and  Profits. 

30.  Recapitulation  of  Accounts  Receivable  and   Payable  Tor  Con- 

trolling Accounts. 

31.  Analysis  of  Accounts  Receivable  and  Payable. 

32.  Compiling  Statement  of  Production  Cost. 

33.  Compiling  Statements  of  Material  and  Supplies  Used. 

ANNUAL    USES 

34.  Footing  inventories,  calculating  extensions. 

35.  Compiling  statement  of  profit  and  loss  for  year. 

36.  Preparing  of  Balance  Sheet. 

37.  Making  comparative  and  general  statistical  statements. 

The  Si-Keyboard  Non-Listing,  Calculating  and  Adding 
Machine 

The  Si-Keyboard  Non-Listing  Calculating  Machine  has  a 
standard  adding  machine  keyboard  on  which  problems  in  ad- 
dition, subtraction,  multiplication  and  division  may  be  per- 
formed where  a  printed  list  of  items  is  not  necessary,  where  all 
that  is  wanted  is  the  answer. 

In  the  non-listing  machine  the  rows  of  figures  are  divided 
into  columns  similar  to  the  division  of  a  ledger  column.  The 
first  row  of  keys  at  the  right  of  the  keyboard  runs  from  I  to  9 
cents,  the  second  row  of  figures  represent  10  cents  to  90  cents, 
the  third  row  I  to  90  dollars,  the  fourth  row  10  to  90  dollars, 
and  so  on  across  the  keyboard  to  the  ninth  column,  which  is 
millions  of  dollars.  All  the  numbers  extend  from  one,  at  the 
bottom  of  the  machine  to  the  figure  nine  at  the  top.  The  first 
and  second  fingers  of  the  right  hand  are  always  used  when 
operating  the  keyboard.  Naughts  or  ciphers  add  automatical- 
ly, therefore  there  are  no  keys  for  ciphers. 

To  add  by  touch  on  the  non-listing  machine,  proceed  as 
follows : 

1.  Place  a  blotter  or  strip  of  paper  back  of  the  figure  5  keys. 

2.  Use  the  first  and  second  fingers  of  the  right  hand,  placing  the 
pencil  between  the  thumb  and  the  palm  of  the  hand  while  operat- 
ing the  machine.     This  saves  time  in  writing  down  results. 


STORY  OF  THE  ADDING  MACHINE          249 

3.  The  even  numbers,  2's  and  4/5,  are  located  by  their  smooth,  flat 
key  tops  and  by  their  relation  to  the  I's  and  the  5's.     The  uneven 
numbers  I's,  3'$,  and  5's,  have  concave  or  bowl-shape  key  tops. 
The  j's  are  located  readily  by  their  relation  to  the  flat-top  keys, 
2*s  and  4*8.     The  I's  are  located  by  their  concave  surface  and 
their  position  at  the  bottom  of  the  keyboard,  while  the  5*5  are 
located  by  their  relation  to  the  4*8  and  to  the  blotter  placed  back 
of  the  5's  keys. 

4.  Add  9  by  depressing  5  and  then  4. 
Add  8  by  depressing  4  twice. 
Add  7  by  depressing  4  and  3. 
Add  6  by  depressing  3  twice. 

To  add  23,  plus  44,  plus  65,  use  the  first  and  second  fingers  of  the 
right  hand  and  depress  the  figure  3  in  the  first  column  to  the 
right  of  the  machine,  with  the  second  finger,  and  depress  the  figure 
2  in  the  second  column  with  the  first  finger.  The  number  23  will 
be  recorded  in  the  window  dials  at  the  bottom  of  the  machine. 
Depress  44  and  67  will  appear  in  the  window  dials  as  44  has  been 
added  to  23.  Depress  65  and  you  will  notice  that  132  will  appear 
in  the  window  dials  as  65  has  now  been  added  to  23  and  44,  making 
a  total  of  132.  When  the  keys  are  depressed  they  are  automati- 
cally released  as  soon  as  the  fingers  are  removed.  To  clear  the 
non-listing  machine,  turn  the  small  handle  at  the  right  once, 
and  all  naughts  or  ciphers  will  appear  in  the  window  dials. 

For  practice  in  addition  on  the  non-listing  machine,  add  the 
following  problems  in  addition: 

a  10  b  23  c  94  d  76           e   14           f   12             g  87 

12  43  63  45  53  35  32 

21  45  78  57  17  25  25 

22  53  83  56  41  42  64 

23  55  12  25  15  58 
21  35  33  89  31  53  75 
12  54  85  44  25  78  33 

33  35  62  66  23  49  47 

34  42  75  57  27  57  25 

35  34  86  49  52  25  68 
45  45  93  80  25  71  89 
44  32  35  45  35  3°  97 
54  33  57  32  42  25  77 
33  24  13  78  29  20  98 


250 


OFFICE    PRACTICE 


ADDITION 


125  75 

87  50 

'05  05 

25  oo 

15 

130  05 

5 

55  55 
245  75 

775  30" 


lo-Key  Adding-Calculating  Machine 

"Clear  Machine   First'' 

To  list  and  add  depress  figures  on  the  keyboard  in  the 
same  order  as  if  writing  them  with  a  pencil,  then  pull 
the  lever. 

EXAMPLE:  To  list  and  add  the  figures  shown  on  margin 
to  the  left.  Clear  the  machine.  Depress  keys  i,  2,  5, 
7  and  5,  and  pull  lever.  Depress  8,  7,  5  and  o,  and 
pull  lever.  Continue  in  the  same  manner  until  all 
the  items  are  listed  and  printed. 

To    Take  a  Grand  Total 

Before  taking  a  total,  always  pull  the  lever  once  for 
a  Hank  stroke.  Push  in  the  total  key  with  the  thumb 
of  the  right  hand,  holding  it  in  until  the  lever  has 
started  forward.  The  total  will  be  printed  in  red  and 
designated  thus,  *. 


DALTON  CALCULATOR 


STORY  OF  THE  ADDING   MACHINE 


251 


For  practice  on   a   lo-key 
machine  add  the  following: 


machine  or  on  the  Si-kevboard 


a  25 

Ms 

e   14 

d  234 

e    117 

f   154 

g  2253 

37 

41 

41 

123 

127 

263 

3212 

45 

37 

25 

332 

128 

352 

3434 

50 

73 

35 

221 

227 

451 

2345 

37 

47 

18 

134 

228 

511 

1432 

89 

35 

7i 

245 

337 

512 

2255 

52 

52 

29 

232 

338 

523 

3423 

19 

18 

92 

343 

349 

534 

1567 

40 

49 

28 

121 

339 

545 

2366 

25 

90 

62 

333 

297 

517 

4477 

30 

25 

27 

345 

279 

537 

3554 

20 

30 

75 

454 

107 

548 

3523 

15 

40 

3Q 

543 

208 

559 

4224 

42 

26 

95 

432 

309 

543 

4354 

54 

05 

38 

321 

411 

555 

2535 

28 

95 

53 

125 

412 

198 

2422 

16 

30 

49 

235 

423 

289 

3366 

47 

20 

15 

445 

434 

378 

1626 

52 

15 

10 

334 

343 

387 

1411 

28 

18 

50 

223 

242 

478 

2135 

a 

$170.91     b 

$107.36 

58.45 

.76 

c    $63.55  < 

i  $168.76 

e    $37.21 

f    $37-21 

26.23 

49.63 

12.60 

56.40 

17-75 

•75 

61.67 

37-43 

77.00 

6.61 

47-75 

47.52 

23.89 

6.42 

4.24 

65.40 

4977 

36.26 

38.52 

32.44 

I7-3I 

27.40 

45-20 

45-15 

29-75 

50.59 

6.08 

4-52 

84.94 

71.66 

6.72 

421.62 

11.76 

29.74 

9-44 

101.75 

4-25 

•45 

18.10 

40.70 

8.65 

18.65 

148.39 

8-93 

i.  80 

4-25 

3-49 

23.19 

20.00 

IO.OO 

48.49 

41.64 

9.72 

7.92 

46.26 

21.  l6 

.89 

20.00 

63.22 

63.22 

37-33 

14.98 

23.21 

32.52 

58.50 

58.50 

•37 

5-33 

21.96 

27.58 

38.41 

37.60 

1-63 

13.64 

4.04 

9-37 

75-55 

54-95 

26.48 

27.70 

7.90 

25.70 

81.75 

65.40 

21-55 

6.17 

5-7i 

24.17 

72.77 

72.00 

I.OO 

94.11 

6-57 

3570 

4.83 

19.14 

252  OFFICE    PRACTICE 


23-30 

30.54 

15.00 

200.30 

136.70        104.83 

I.OO 

12.80 

15-35 

n-54 

19.14            200.00 

37-n 

7.28 

18.18 

1  1  1  .04 

.22             136.70 

112.20 

•37 

6.50 

13.78 

17.56       .        85.29 

13.78 

31-03 

1.25 

.42 

32.28               17.56 

1.62 

1.88 

20.61 

51.64 

.87               32.28 

51.64 

i.  80 

2-55 

1.88 

35-94         103.54 

1.88 

39-35 

19.32 

4-35 

68.58           43.62 

4-35 

28.16 

27.20 

58.67 

.96           68.58 

58.67 

71.17 

4-30 

55.36 

24.00           99.30 

.36 

7.98 

9.88 

4-96 

55-52           24.00 

3.30 

8.40 

•52 

8.50 

2-49           35-52 

80.26 

13.25 

13.22 

15.12 

45.15           22.00 

8.50 

179.10 

13-14 

6.37 

9-09          45.15 

21.62 

33-45 

63-43 

39-51 

26.13             9.09 

26.37 

12.45 

5-i9 

60.78 

49.00           26.13 

I 

* 

* 

123,456.78 

2 

11.22 

* 

234,567.89 

3 

.21 

22.33 

12.21 

345,678.90 

4 

.32 

33-44 

23.32 

456,789.00 

5 

•43 

44-55 

34-43 

567,890.00 

6 

•54 

55.66 

45-54 

678,900.00 

7 

.65 

66.77 

56.65 

789,000.00 

8 

.76 

77-88 

67.76 

890,000.00 

9 

.87 

88.99 

78.87 

900,000.00 

.98 

T  r\ 

99.11 

89.98 

r\T    T  T 

.19 

Vl  .  1  1 

.12 

* 

876,543.21 

•23 

* 

22.11 

* 

987,654.32 

•34 

3-21 

33-22 

12.31 

98.765.43 

•45 

4-32 

44-33 

23.42 

9.876.54 

•56 

5-43 

55-14 

34-53 

987.65 

-67 

6-54 

66.55 

45-64 

98.76 

.78 

7.65 

77-66 

56.75 

9.87 

-89 

8.76 

88.77 

67.86 

.98 

•9i 

9-87 

99.98 

78.97 

.09 

i.  98 

i   rr» 

11.99 

89.18 

r»o    ir» 

STORY  OF  THE  ADDING  MACHINE 


253 


1.23 
2.34 
3-45 
4.56 
5.67 
6.78 
8.91 
9.12 


43.21 
54-32 
6543 
76.54 
98.76 
19.87 
21.98 
32.19 


112.33 
223.44 

334-55 
445-66 

556.77 
778.99 
889.11 
991.22 


21.12 

32.23 

43-34 
54-45 
76.67 
87.78 
98.89 
19.91 


1,122.33 
2,233.44 

3>344-55 
4,455-66 

5,566.77 
6,677.88 
8,899.11 
9,911.22 


12.34 

V 

23-45 

* 

10.02 

| 

34-56 

543-21 

2O.O3 

I2.OO 

45-67 

654-32 

30.04 

23.00 

56-78 

765-43 

40.05 

34-00 

67.89 

876-54 

5O.O6 

45-oo 

78-91 

987-65 

60.07 

56.00 

91.23 

219.87 

80.09 

78.00 

32i.98 

9O.OI 

89.00 

432.19 

91  .00 

12,233.44 

23,344-55 
34,455.66 
45,566.77 
56,677.88 
67,788.99 
78,891.22 
91,122.33 


56.46 

77.66 

868.67 

31347 

34-24 

99.88 

676.34 

745-74 

78.78 

24.35 

353-5<> 

565-67 

45-45          - 

46.68 

667.65 

343.24 

34-23 

58.69 

454.68 

464.53 

89.89 

23-23 

456.43 

756.56 

68.46 

44-34 

634.34 

123.12 

23.56 

77-55 

867.56 

232.35 

34.12 

35-36 

754-34 

544.56 

5746 

57.67 

367.89 

333-45 

35-68 

99-77 

234-56 

453-42 

H.I3 

11.33 

323-89 

674-53 

56.45 

26.48 

567.89 

246.35 

44-34 

38.59 

434-12 

794-51 

77-56 

65.86 

167.45 

545.67 

89,767.49 
67,545.66 
54,232.25 

65,056.06 
70,500.07 

65,350.03 
46,060.79 
76,050.07 
65,405.98 
87,660.67 
91,919.19 
19,191.91 
64,336.05 
75,000.76 
60,000.06 


254 


OFFICE   PRACTICE 


33-22 

47.24 

245-34 

634.34 

11.44 

53-6S 

334-23 

654.23 

33.77 

46.76 

489.89 

342.45 

66.88 

45.65 

535-35 

65578 

46.46 

2343 

635.13 

742.46 

57.13 

67.44 

746.23 

533-35 

68.78 

55-33 

143.34 

342.35 

34-23 

656.76 

1,231.34 

324.66 

50,605.70 

78.56 

445-44 

2,33346 

650.68 

30,400.72 

34-79 

545-79 

3,225.67 

760.55 

20,704.09 

56.45 

751-24 

4,434.58 

405.08 

80,020.06 

24-23 

336.79 

5,212.35 

760.54 

86,006.78 

64.24 

655-76 

6,567-67 

456.54 

40,450.45 

32.43 

466.35 

7-657.79 

343-44 

54,023.07 

88.76 

336.78 

8,655.68 

705.07 

76,045.04 

46.55 

876.44 

9,545-45 

466.07 

13,030.23 

65-43 

455-47 

6,454-55 

3I7-89 

42,032.30 

77-66 

343-45 

9,866.44 

750-56 

50,506.07 

34-23 

456.34 

7,867.56 

455.60 

65,070.08 

78.78 

123.12 

4,534-23 

606.04 

70,000.08 

77.66 

223.21 

1,212.45 

333-02 

40,530.40 

24.11 

334.56 

4-332.34 

667.07 

23,304.40 

35-45 

545-66 

7,554-55 

908.60 

64,045.08 

67-57 

64345 

4,564.37 

303.32 

70,550.06 

78.78 

989.68 

8,784.58 

205.50 

58,066.77 

34-34 

556.57 

6,767.34 

678.47 

67,605.06 

35-12 

232.34 

3,434.56 

453.04 

56,024.03 

45-54 

535-43 

6,076.77 

635-07 

35,045-02 

2637 

2162 

850 

8126 

330 

36 

5867 

345 

188 

5164 

162 

1378 

1  1  220 

37ii 

100 

2330 

100 

2155 

2648 

163 

37 

3733 

4626 

2000 

14839 

425 

672 

2975 

3852 

2389 

6167 

12663 

5845 

17091 

1245 

4443 

17910 

1323 

840 

798 

7117 

2816 

3935 

1  80 

1  88 

3103 

37 

728 

9411 

3054 

1280 

617 

2770 

1364 

533 

1498 

2116 

IOOO 

893 

45 

4262 

559 

3244 

642 

3643 

4963 

STORY  OF  THE  ADDING  MACHINE 


255 


76 

•  10736 

519 

6343 

I3H 

1322 

52 

988 

330 

2720 

1932 

255 

2061 

125 

650 

1818 

657 

1500 

1533 

571 

799 

404 

2196 

2321 

89 

4849 

1  80 

1810 

1176 

608 

1731 

424 

7700 

1260 

6355 

16877 

6078 

3951 

637 

1512 

850 

495 

5536 

5867 

435 

1  88 

5164 

42 

1378 

IIIO4 

3570 

2130 

"54 

2417 

2570 

937 

2758 

3252 

20OO 

4164 

425 

4070 

2975 

452 

2740 

6540 

661 

5640 

16876 

98264 

4900 

2613 

909 

4515 

249 

5552 

24OO 

96 

6958 

4594 

87 

3228 

1756 

22 

483 

13676 

1914 

7277 

8175 

7555 

3841 

5850 

6322 

972 

349 

865 

944 

7494 

4520 

4977 

4752 

1775 

3721 

79281 

4976 

2613 

909 

4515 

2200 

5552 

2400 

9930 

6958 

4362 

10354 

3228 

1756 

8529 

10483 

20000 

13670 

1914 

7200 

6540 

5495 

3760 

5850 

6322 

792 

2319 

1865 

IOI75 

7166 

4515 

3626 

4752 

75 

3721 

1122  33 
2233  44 
3344  55 
4455  66 
5566  77 
6677  88 
7788  99 
8899  oo 
1928  37 
2837  26 
3746  15 
4655  04 
5564  93 
6473  82 
7382  71 
8291  60 


23384  57 
34457  66 
45566  75 
56657  84 
67748  93 
78839  02 
89920  n 
90019  oo 
56748  39 
47389  20 
38290  19 
29101  oo 
10090  99 

21543  76 
32654  87 
43765  98 


30766  45 
68993  04 

93947  70 
20636  78 
42948  23 
58551  93 
40325  63 
89709  50 
89994  71 

31953  33 
48139  65 
26254  17 
86219  59 

51343  77 
98033  07 
14281  91 


256 


OFFICE   PRACTICE 


9100  59 

6547  38 
5468  27 
4359  16 
3240  05 
2130  95 
1029  83 
8765  45 
7654  32 
6543  21 
5432  10 
4321  09 
3210  98 

2IOQ  87 
1098  76 
6543  09 
1234  S^ 
4567  09 
2145  76 
3987  20 
3456  87 
1254  67 
6291  56 

8016  45 
2569  23 
7432  98 

3905  12 

7234  98 
3926  15 


54876  09 
65987  10 
76098  01 
87109  90 
98090  01 

90123  84 

89234  75 
78345  66 
67567  57 
56678  48 

45789  39 
34890  20 
23901  19 
12092  68 
10293  48 
29384  57 
38475  66 
47566  75 
56657  84 
65748  93 
74839  02 
83920  ii 
92011  oo 
61728  39 
52817  20 
43906  ii 

32015  02 
25924  83 
10293  48 


18581  56 
67062  82 
45025  98 

52134  83 
99305  92 
94406  26 
87620  23 

95757  69 
74901  74 
13001  57 
3536o  04 
68592  19 
68657  42 
77528  36 
46169  ii 
26766  39 
99935  49 
52415  42 
98974  03 

62315  47 
13618  03 
32679  13 
11776  51 
80214  94 
92136  92 
97456  91 
26185  °6 
77084  01 
64985  10 


Vertical  and  Horizontal  Adding 

Check  by  adding  the  two  sets  of  totals. 

1382.57 


I45-67 
5I7-57 
41.69 
128.50 
318.59 

675-39 

13.20 

1.48 


5H8.57 
148.50 

2153-49 
219.38 

2741.50 

123.89 

41.50 

3189.47 


31-68 

120.83 
87.50 

3I7-50 
1476.20 
3181.49 

815.40 


I587-39 

1276.39 

416.59 

318.29 

41-39 

1.29 

1487.39 

4813.29 


STORY  OF  THE  ADDING  MACHINE 


136.29 

312.68 

69.05 

413-20 

415-49 

4191.28 

1005.47 

518.69 

31.59 

9147.38 

3i6,49 

87.50 

106.59 

318.57 

219.47 

139-50 

51.40 

51-79 

1509.30 

1287.39 

i-59 

316.59 

4812.06 

1483.20 

3158-47 

598.39 

3762.17 

318.20 

415.48 

51-49 

147.48 

13.20 

31.68 

319.57 

3182.48 

1476.39 

257 


Vertical  and  Horizontal  Adding 


Check  by  adding  the 

three  sets  of  totals. 

$126412.80 

$214621.64 

$620177.25 

98536.41 

92684.75 

516214.29 

232714.18 

169295.75 

1019027.60 

6812.00 

35789-44 

261426.41 

982.75 

18927.95 

721164.74 

12568.30 

374261.42 

289946.36 

229942.78 

126406.74 

191472.45 

8362.40 

692416.24 

64124.75 

226491.37 

742467.48 

12012.40 

26054.90 

62145.67 

916938.45 

426834.72 

521207.84 

7518.95 

82964.35 

37292.20 

16219.75 

3594827.20 

12040.00 

1752.64 

7960.00 

7245.69 

121490.75 

86521.46 

36047.46 

69876.62 

754376.50 

694116.52 

724138.75 

1016823.25 

721205.11 

126421.26 

62943.12 

62147.01 

217221.64 

4836.90 

741627.03 

69214.75 

927859.46 

621264.75 

211169.41 

26258297.74 

69128.60 

99940.69 

126129.45 

120156.39 

72126.73 

968528.17 

992017.29 

251327.14 

14912.18 

121202.60 

1626.47 

251927.86 

101427.65 

7212.45 

46532.45 

241659.64 

418.37 

22614.92 

69398.95 

158739.27 

258  OFFICE    PRACTICE 

Adding  Fractions 

Where  common  fractions  are  to  be  added  frequently,  the 
use  of  a  fractional  machine  simplifies  the  operation. 

All  calculators  and  adding  machines  are  built  in  4ths,  8ths, 
and  I2ths  fractional  models. 

A  special  machine  for  handling  English  Currency  is  also 
furnished  (known  as  the  sterling  machine). 

Note:  The  fractional  section  of  machines  cannot  be  used  for  multiplication. 
Where  a  limited  amount  of  fractional  addition  is  required,  common  fractions 
may  be  converted  into  decimals  and  added  on  a  standard  keyboard. 

Common  Fractions 

Decimal  equivalents  of  common  fractions  on  this  page  should 
be  memorized.  Change  fractions  to  decimal  equivalent  before 
adding. 


4ths. 

1/4 

.=  .2 

5 

3/4  =  -75 

3rds.  1/3  = 

•3333 

1/2 

=  •5 

2/3  = 

.6667 

Add 

34 

1/2 

21 

3/4 

30 

1/4   Add 

36 

i/3 

57 

1/3  51 

2/3 

432 

35 

12 

3/4 

57 

3/4  i 

12 

2/3  227 

98 

1/2 

45 

3/4 

13 

98 

2/3  394 

2/3  49 

3/4 

51 

1/4 

32 

i/4 

5 

1/2 

H5 

4/8  152 

85 

i/3 

6ths. 

1/6 

=.l667 

5/6 

=  .8333 

8ths. 

1/8  =  . 

125  5/8  = 

.625 

2/6 

=  •3333 

2/8  =  . 

25 

6/8  = 

•75 

3/6 

=  -5 

3/8  =  . 

375 

7/8  =  , 

875 

4/6 

=  .6667 

4/8  =  . 

5 

Add 

54 

1/6 

26 

1/2 

31 

1/6    Add 

27 

1/6 

58 

i/4  79 

1/8 

27 

1/4 

45 

1/3 

89 

2/3 

139 

3/8 

47 

5/6  49 

3/8 

31 

2/3 

53 

3/4 

17 

241 

5/6 

42 

3/4  52 

7/8 

51 

5/6 

69 

1/6 

38 

i/3 

189 

1  4 

53 

1/6  78 

58 

I2ths. 

1/12  = 

•0833 

4/12 

=  •3333 

7/12 

=  •5833 

IO/I2  =  . 

8333 

2/12  = 

.1667 

5/12 

=  .4167 

8/12 

=  .6667 

11/12  =  . 

9167 

3/12  = 

•25 

6/12 

=  •  5 

9/12 

=  •75 

Add 

52 

I/I2 

56 

1/4 

79  i/3 

139  5/12 

52  7/12 

37 

2/4 

95 

1/3 

136  1/8 

30  5/8 

397  2/3 

75 

42 

2/3 

84  3/4 

694 

61  i 

I/I2 

4i 

3/4 

153 

1/2 

27  5/6 

27  I  I/I  2 

154  * 

/4 

STORY  OF  THE  ADDING  MACHINE          259 

Multiplication  on  the  8i-Key  Calculating  Machine  (Non-listing) 

Multiplication  is  another  form  of  addition — 9X3  equals  27. 
This  result  may  be  obtained  on  the  calculating  machine  by 
adding  9  three  times  as  9  plus  9  plus  9  equals  27,  or  by  adding 
3  nine  times  as  3  plus  3  plus  3  plus  3  plus  3  plus  3  plus  3  plus 
3  plus  3  equals  27.  In  the  first  method  we  depressed  the 
nine  key  on  the  keyboard  three  times,  while  in  the  second 
method  we  depressed  the  three  key  nine  times.  One  can 
readily  see  the  first  method  gives  greater  speed  in  the  operation. 
This  same  idea  is  used  in  multiplication  on  this  machine. 

Multiply  the  following  on  the  non-listing  machine: 

Example: 

Multiply  345  by  57 

Place  the  first  and  second  fingers  on  the  keys  that  represent 
57.  Depress  these  5  times.  Move  the  fingers  one  column  to 
the  left  (holding  570)  and  depress  570  four  times.  Move  the 
fingers  another  column  to  the  left  (holding  5700)  and  depress 
5700  three  times.  The  operation  is  now  complete  and  the 
result,  19665,  appears  on  the  adding  dials  at  the  bottom  of 
the  machine. 

Multiply  the  following.  Verify  all  the  extensions  on  all  the 
invoices  received  in  the  bookkeeping  department. 

a    563  by  57  b  45  by  56  c  683  by  35  d  386  by  89 

457  by  23  67  by  35  276  by  35  307  by  25 

606  by  89  64  by  87  543  by  85  286  by  76 

478  by  36  45  by  23  379  by  42  322  by  86 

425  by  46  36  by  63  275  by  66  648  by  98 

e  326  by  94  f  678by  56  g  756  by  54 

498  by  76  076  by  65  354  by  75 

763  by  34  349  by  43  657  by  56 

345  by  89  326  by  92  568  by  76 

756  by  64  892  by  79  493  by  32 

657  by  24  248  by  82  742  by  49 


260  OFFICE   PRACTICE 

lo-Key  Listing  Machine 

Multiplication 
"Clear   Machine  First" 

EXAMPLE  No.  i:  Multiply  579  by  243.     First  de- 
5  79  press  the  multiply  key,  locking  it  down  by  a  slight 

5  79  forward    pressure.     Write   on    the    keyboard    the 

5  79  multiplicand  (579).     Now  pull  the  operating  lever 

57  90  as   many  times  as  there  are  units  in  the  right- 

57  90  hand  figure  of  the  miltiplier  (3);  depress  the  cipher 

57  90  key  with  the  index  finger  of  the  left  hand;  pull  the 

57  9°  operating  lever  as  many  times  as  there  are  units 

579  oo  in  the  second  figure  of  the  multiplier  (4);   depress 

579  oo  the  cipher  key  again,  then  pull  the  operating  lever 

twice  for  the  remaining  figure  of  the  multiplier, 
1406  97*  releasing  the  multiplying  key  JUST  BEFORE  THE 

SECOND  STROKE.  When  multiplying  by  the  last 
01  left-hand  figure  of  the  multiplier,  ALWAYS  release 
the  multiply  key  just  before  the  lever  starts  for- 
ward for  the  final  stroke.  Then  after  taking  a 
blank  stroke,  take  the  total  as  in  addition,  which 
will  be  the  product. 

Note:    Multiplication   on   the   lo-key   machine  is  very 

rapid  and  the  paper  tape  constitutes  a  PHYSICAL  RECORD 

»  of  the  work,  which  can  be  audited  at  a  glance.     Example 

No.  i,  for  instance,  enables  the  eye  to  see  quickly  that 

the  multiplicand  was  579,  and  that  it  was  multiplied  two 

~Q  ^Q  times  in  the  hundreds  column,  four  times  in  the  tens 

7  column,  and  three  times  in  the  units  column,  and  that 

4  the  sum  of  the  amounts  must  of  necessity  be  the  product. 

794  oo  EXAMPLE  No.  2:    Multiply  794  by  320.     If  the 

794  oo  multiplier  ends  with  ciphers  to  the  right,  add  an 

equal  number  of  ciphers  to  the  multiplicand  before 
2540  80*  pulling  the  operating  lever,  then  proceed  to  multi- 

ply as  usual. 

*  EXAMPLE  No.  3:  Multiply  2143  by  3050.     If  inter- 

214  30  mediate  ciphers  appear  between  the  figures  of  the 

214  30  multiplier,  it  is  necessary  after  multiplying  by  the 

214  30  figure  preceding  the  cipher  to  depress  as  many 

214  30  additional  ciphers  as  there  are  intermediate  ciphers 


•STORY  OF  THE  ADDING   MACHINE 


261 


214  30 
21430  oo 
21430  oo 
21430  oo 

65361  50* 


'235  25 

235  25 

235  25 

235  25 

235  25 

2352  50 

2352  50 

23525  oo 

235250  oo 

235250  oo 

235250  oo 

235250  oo 

2352500  oo 

2352500  oo 

2352500  oo 

8027906  25* 


in  the  multiplier.  These  are  in  addition  to  the 
single  cipher  always  struck  as  explained  in  Example 
i.  If  there  is  one  intermediate  cipher,  two  ciphers 
must  be  depressed;  if  two  intermediate  ciphers, 
three  must  be  depressed,  etc. 

Multiplication  by  Fractions 
"Clear  Machine  First" 

To  multiply  by  fractions,  reduce  the  fraction  to  a 
decimal  and  multiply  as  in  ordinary  multiplica- 
tion, always  remembering  to  point  off  as  many 
decimals  in  the  PRODUCT  as  there  are  decimals  in 

BOTH    the   MULTIPLICAND   AND   MULTIPLIER. 

EXAMPLE  No.  i :  2351/4x341/8.  235  1/4  equals 
235.25  and  34  1/8  equals  34.125.  Put  235.25  in 
the  keyboard  in  the  ordinary  way  and  multiply  by 
34.125.  Point  off  five  decimals  to  the  right,  so 
that  the  product  is  8027.90625.  This  example  is 
worked  out  in  full  on  the  margin. 

Common  fractions  that  cannot  be  made  into  round 
decimals  can  be  handled  in  the  same  manner  by 
running  out  two  or  three  additional  decimal 
points  in  both  the  multiplicand  and  the  multiplier 
containing  such  fractions. 


Multiplication  Beyond  the  Capacity  of  the  Machine 
"Clear  Machine   First" 

42345600  EXAMPLE^NO.  i:  Multiply  423456  by  41.23.    This 

423456  oo  method  of  multiplication  utilizes  the  back  space 

423456  oo  key  and  is  of  practical  value  where  large  decimals 

423456  oo  are  being  multiplied  and  where  accuracy  to  the 

42345  60  final  decimal  is  not  essential.     It  is  also  used  in 

4234  56  Division    by    Reciprocals    reducing    Division    to 

4234  56  Multiplication.     As  the  multiplicand   in  this  in- 

423  45  stance  contains  six  figures  and  the  multiplier  four, 

423  45  the  result  may  contain  ten  figures,  one  more  than 

423  45  the  capacity  of  a  9-column  machine.     Set  up  the 

multiplicand,  adding  as  many  ciphers  as  there  are 

1745909  07*  figures  in  the  multiplier,   less  one.     (If  this  will 


262  OFFICE    PRACTICE 

make  more  than  eight  figures  in  all,  drop  enough 
of  these  ciphers  to  reduce  it  to  eight,  as  no  more 
than  eight  figures  should  be  put  into  the  machine.) 

Set  up  42345600.  Depress  the  multiply  key. 
Now  multiply  in  the  usual  manner,  but  beginning 
with  the  left-hand  figure  of  the  multiplier  (4). 
Depress  the  back  space  key  once  and  multiply  by 
the  next  figure  of  the  multiplier  (i),  and  so  on, 
multiplying  by  the  2  and  3  and  depressing  the 
back  space  key  once  before  each  multiplication. 
Release  multiply  key  before  the  final  stroke  as  in 
ordinary  multiplication  and  take  total  in  the 
usual  way. 

Pointing  Off  Decimals 

Trie  number  of  places  to  be  pointed  off  in  the  result  is  the  total 
number  of  decimal  places  in  both  multiplicand  and  multiplier,  less 
the  number  of  figures  omitted  from  the  multiplicand,  which  can  be 
determined  by  a  glance  at  the  last  figures  listed  in  making  the  multi- 
plication. In  this  instance  there  are  in  all  five  decimal  places,  but 
the  last  figures  listed  (42345)  show  that  one  figure  is  omitted.  We 
therefore  point  off  only  four  places  in  the  result. 

Multiply  the  following,  using  either  style  of  machine: 

25  16  27  14  19  16 

X3  X3  X3  X3  X4  X4 

15  18  16  14  16  28  74 

x5  x5  XQ  xy  X5  x6  x2 

4659  x  56  2534  x  63  6424  x  75  7212  x  56 

1827  x  65  1324  x  85  1475  x  64  2145  x  96 

2144  x  48  3432  x  69  1621  x  36  1367  x  32 

Verifying  Invoices 
"Clear  Machine  First" 

This  example  Where  it  is  only  necessary  to  know  that  the  total 
shows  physical  amount  of  invoice  is  correct,  it  is  better  to  multiply 
verification  of  the  number  of  items  by  the  price  WITHOUT  taking 


STORY  OF  THE  ADDING  MACHINE 


263 


invoice    shown 
on  this  page. 


2  75 

2  75 
27  50 

3  25 
3  25 
3  25 
3  25 
3  25 

32  50 
i 
i 


50 

50 
15  oo 
15  oo 

i  75 
i  75 
i  75 
i  75 

121  75* 

An  audit  slip 
same  as  above 
should  be 
pinned  to  each 
invoice. 

Extend  the 
amount  due: 

16  articles 

14  articles 

37  articles 

28  articles 

364  bbls  @ 
988  bbls  @ 
640  bbls  @ 


a  total  after  each  multiplication,  thus  permitting 
the  amounts  to  accumulate  in  the  machine  and, 
enabling  you  to  take  a  grand  total  at  the  END  or 
LAST  multiplication,  which  will  be  the  amount  of 
the  invoice.  The  illustration  on  the  margin 
hereof  is  a  PHYSICAL  VERIFICATION  of  the  invoice 
which  follows;  and  was  done  by  making  all  the 
multiplication  BEFORE  taking  the  total: 

12  Pairs  of  Shoes  at  $2.75 — $33.00 

15       "      "      "       "      3.25-48.75 

22         "        "        "         "        1.50—   33.00 

4      "      "      "       "      1.75-     7-00 


$121.75 

When  a  series  of  multip  lications  are  to  be  made 
it  has  been  found  to  be  advantageous  to  lock  the 
multiply  key  down.  Depress  keys  representing 
the  first  multiplicand,  multiply  in  the  regular  way 
and  be  sure  to  remove  figures  of  the  multiplicand 
from  the  keyboard  by  depressing  the  correction 
key  before  taking  the  total  and  then  continue  with 
the  next  multiplication  in  the  same  manner.  It  is 
important  that  the  multiply  key  be  released  after 
the  series  of  multiplications  has  been  finished. 


following  bills  and  by  addition  find  the  total 


@  $3.34  each 
@  4.25  each 
@  2.43  each 
@  5.63  each 

$2.46  each 
4.67  each 
3.25  each 


34  yds 
28  yds 
64  yds 
36  yds 


$2.75  each 
3.25  each 
4.54  each 
5.85  each 


1829  bus.  @ 
4276  bus.  @ 
2864  bus.  @ 
2713  bus.  @ 
3645  bus.  @ 


$0.48  each 
.98  each 
.64  each 
.75  each 
.87  each 


264 


OFFICE   PRACTICE 


Multiply  the  following: 


326  x  394 

678  x  756 

756  x  542 

536  x  782 

498  x  576 

976  x  657 

354  x  756 

412  x  382 

763  x  342 

349  x  234 

657  x  756 

776  x  667 

954  x  786 

987  x  467 

567  x  756 

721  x  789 

756  x  342 

654  x  854 

123  x  456 

720  x  890 

354  x  895 

326  x  926 

394  x  574 

234  x  432 

756  x  764 

467  x  345 

493  x  313 

475  x  786 

761  x  721 

892  x  762 

645  x  657 

674  x  687 

982  x  346 

497  x  497 

529  x  629 

222  X  565 

280  x  388 

649  x  986 

547  x  562 

296  x  782 

743  x  326 

496  x  689 

629  x  492 

998  x  788 

542  x  467 

455  x  596 

989  x  323 

864  x  246 

632  x  674 

324  x  432 

549  x  656 

357  x  975 

497  x  746 

134  x  567 

554  x  779 

123  x  456 

386  x  497 

326  x  467 

629  x  886 

234  x  678 

432  x  856 

674  x  746 

529  x  669 

456  x  789 

956  x  326 

396  x  497 

889  x  882 

890  x  987 

785  x  498 

432  x  856 

552  x  999 

618  x  723 

346  x  763 

956  x  326 

728  x  659 

705  x  865 

395  x  954 

785  x  498 

990  x  772 

742  x  567 

787  x  989 

346  x  763 

720  x  820 

125  x  567 

542  x  354 

395  x  954 

729  x  770 

155  x  191 

678  x  756 

787  x  756 

729  x  652 

246  x  282 

976  x  657 

542  x  354 

765  x  789 

157  x  393 

547  x  756 

354  x  756 

234  x  892 

657  x  246 

882  by  21 

H95763  by  28 

514958  by  724 

384756  by  635 

713  by  31 

4158673  by  29 

415967  by  482 

495872  by  642 

9702  by  42 

4159673  by  26 

413947  by  526 

394857  by  651 

3074  by  53 

1495516  by  36 

405967  by  512 

203857  by  667 

13889  by  43 

4158684  by  37 

915968  by  474 

148573  by  672 

10695  by  23 

4159673  by  38 

98.6158  by  532 

148653  by  684 

15408  by  24 

5168674  by  39 

596854  by  546 

148572  by  687 

14075  by  25 

H95743  by  52 

395394  by  557 

158673  by  692 

8476  by  26 

1495742  by  43 

159674  by  568 

158674  by  703 

101432  by  31 

5149573  by  42 

495873  by  579 

158673  by  714 

145056  by  32 

5169654  by  57 

159573  by  582 

H8573  by  723 

156156  by  33 

7859430  by  44 

394857  by  591 

948573  by  736 

287420  by  34 

7189543  by  54 

915873  by  616 

495874  by  742 

2958674  by  35 

1596765  by  46 

158673  by  624 

495867  by  753 

STORY  OF  THE   ADDING  MACHINE          265 

Subtraction  on  the  io-Key  Machine 

"Clear  Machine  First" 

SUBTRACTION         List  the  minuend  as  for  addition.     Write  the  sub- 

EXAMPLE  No.   I       trahend  on  the  keyboard,  but  before  pulling  the 

lever,  depress  the  non-add  key,  holding  it  down 

until  the  forward  stroke  is  completed.     The  sub- 

*  trahend  will  now  be  designated  V.     Then  rewrite 
245  79                the  subtrahend,  this  time  using  the  red   figures 
130  68V             on  the  keyboard.     Depress  the  subtraction  key 

and    pull    lever.     The    subtrahend    will    now    be 
115  ii*  further  designated  by  the  sign  -  .     The  total  is 

then  taken  as  for  addition.     See  example  in  mar- 
gin to  the  left. 

Correction  by  Subtraction 

EXAMPLE  No.  2       To  subtract  an  erroneous  amount  (see  "Correction 
by  Subtraction  Key"),  turn  the  platen  until  the 

*  amount  to  be  subtracted  is  just  above  the  top  of 
2  25  the  ribbon.     Then  rewrite  the  erroneous  amount 

ii  50  on  the  keyboard  using  the  red  figures.  Depress 

66  15  subtraction  key  and  pull  lever.  The  amount  sub- 

24S  79  ~  tracted  will  be  designated  by  -  .  Addition  may 

34  57  now  be  resumed.  In  Example  No.  2,  $245.79  was 

76  50  erroneously  added,  and  then  subtracted  in  this 
manner. 

190  97* 

Subtraction  on  the  8i-Key  Machine  (non-listing) 

. 

The  small  figures  on  the  keys  "of  the  keyboard  of  the  non- 
listing  machine  are  for  the  use  of  problems  in  subtraction,  the 
large  figures  being  used  for  problems  in  addition  and  multipli- 
cation. 

The  complement  of  a  number  is  the  difference  between  that 
number  and  the  next  higher  power  often.  The  complement  of 
2  is  8,  as  2  subtracted  from  10  leaves  8  or  8  added  to  2  equals 
10  (10  is  the  next  higher  power  of  10  in  this  case). 

The  small  figures  on  the  keys  of  the  keyboard  indicate  the 


266  OFFICE   PRACTICE 

complements.  It  is  not  necessary  to  make  any  mental  calcu- 
lation; simply  depress  the  number  less  one  unit,  according  to 
the  small  figures;  the  dials  at  the  bottom  of  the  machine  will 
show  the  complement  of  the  number.  Thus  to  get  the  com- 
plement of  7  depress  the  small  figure  6,  which  is  one  unit  less 
than  7;  for  38  depress  the  small  figures  37;  for  3467  depress 
the  small  figures  3466.  (This  extra  one  is  eliminated  by  means 
of  the  "9"  key  at  the  top  of  the  machine  and  to  the  left  of  the 
amount.) 

To  subtract  on  the  non-listing  machine  observe  the  following 
instructions: 

1.  Put  the  larger  number  of  your  problem  (minuend)  in  the  machine 
by  depressing  the  figures  of  the  number  (large  figures). 

2.  Depress  the  amount  to   be  subtracted,   according  to  the  small 
figures,  less  one  on  the  right-hand  figure. 

3.  Depress  all  the  9's  to  the  left  of  the  columns  in  which  the  com- 
plement was  added. 

Examples:    From  456  subtract  244. 

Put  456  in  the  machine  by  depressing  the  keys  4,  5,  and  6,  using 

the  large  figures. 

Depress  the  small  figures  243  (which  is  one  unit  less  than  244). 

Depress  the  9  keys  at  the  top  of  the  machine  to  the  left  of  the 

third  column. 

Result  is  212. 

Subtract  the  following: 

3412  from  4321  3454  from  9865  6786  from  9876 

4785  from  4865  2186  from  4386  4354  from  6354 

6543  from  9876  2986  from  4354  4354  from  6354 

7685  from  8967  1865  from  4321  5555  from  6543 

4523  from  6542  4865  from  43214  6654  from  8654 

9820  from  9878  6542  from  8643  7342  from  8651 

31378  from  34329  2186  from  6873  1648  from  3648 

5645  from  9678  4265  from  4821  6543  from  7654 

74654  from  98837  4321  from  8678  4386  from  5436 

2186  from  2746  2648  from  4321  7656  from  8642 


STORY  OF  THE  ADDING  MACHINE 


267 


Add  the  two  columns  of  the  Trial  Balance  given  in  Chapter 
Three.  Is  the  debit  side  equal  to  the  credit  side?  If  so  the 
hooks  from  which  the  Trial  Balances  were  taken  are  in  balance 
and  the  posting  to  the  Ledger  was  correctly  done. 

In  the  Cash  Accounts,  add  the  Receipts  of  Cash  and  the  Pay- 
ments of  Cash.  Find  the  Balance  of  Cash  by  subtracting  the 
total  receipts  from  the  total  payments. 


Subtract: 

24  from  189 
35  from  176 
37  from  198 
42  from  256 
48  from  239 


56  from  378 
63  from  496 
68  from  299 
74  from  589 
79  from  482 


82  from  293 

84  from  356 

86  from  467 

95  from  382 


WALES    LISTING    MACHINE 


The  listing  machines   are  operated   by  depressing  the  keys 
representing  the  figures  in  the  items  desired   and  pulling  the 


268 


OFFICE   PRACTICE 


operating  handle.  The  result  will  be  shown  on  the  dials  at  the 
front  of  the  machine,  and  will  also  be  printed  on  the  paper  at 
the  back  of  the  machine.  The  machines  are  cleared  by  pulling 
the  handle  until  an  asterisk,  star,  letter  T  or  O,  or  some  signal 
is  given  to  indicate  that  the  machine  is  clear. 


SUPPLEMENTARY  EXERCISES 

The  McGill  Company  has  customers  and  creditors  in  every 
state  throughout  the  United  States.  The  list  of  these  business 
concerns  with  business  and  address  follows: 


Name  of  Firm 
White,  Frank 
Wilson,  Arthur 
Atlantic  &  Pacific  Tea  Co. 
Abraham  &  Straus 
Anderson  &  Mead  Co.  (The) 
Davidson,  John,  &  Son 
Dillon,  James,  &  Son 
Macy  &  Co.  (Inc.) 
Macy,  R.  H.,  &  Co. 
Walters,  Henry 
Lyons,  Charles  W. 
Lawrence,  Louis  E. 
Holt,  Henry,  &  Co. 
Harris  &  Givens  Co. 
Robinson  &  Gray 
Newman,  Joseph  (Inc.) 
Walman,  Michael,  &  Sons 
Vogel,  George 
McGillavery 
O'Brien,  Frank,  &  Co 
McConnell,  Dr.  R.  W. 
MacDowell,  James 
Butler  Brothers 
Swift  &  Co. 
Bryant  &  Co. 
Smith,  The  George  Co. 
McNeill,  Matthew,  &  Bros. 
Oppenheimer,  James,  &  Bro. 
Smith  &  Jones 
Stewart,  Charles  J. 


Business 

Grain  Dealers 

Wood 

Grocers 

Dry  Goods 

Grocers 

Grocers 

Automobile. 

Wiring 

Dry  Goods 

Woolens 

Upholsterers 

Grocer 

Publishers 

Insurance 

Insurance 

Publishers 

Grain  Dealers 

Express 

Flour  &  Grain  Dealers 

Plumbing  Supplies 

Chemists  Supplies 

Machinery 

Flour  &  Grain 

Meat  Packing 

Fruit  Growers 

Lawyers 

Chemists 

Ventilating 

Printing 

Dairy  Products 


Address 
Delta,  Colo. 
Oakland,  Cal. 
Jackson,  Miss. 
Brooklyn,  N.  Y. 
New  Haven,  Conn. 
Topeka,  Kan. 
Jefferson,  Mo. 
Dallas,  Tex. 
New  York,  N.^. 
Concord,  N.  H. 
Topeka,  Kan. 
Annapolis,  Md. 
New  York,  N.  Y. 
Waterbury,  Conn. 
North  Adams,  Mass 
Macon,  Miss. 
Topeka,  Kan. 
Dover,  Del. 
Phoenix,  Ariz. 
Lansing,  Mich. 
Raleigh,  N.  C. 
Detroit,  Mich. 
Chicago,  111. 
Chicago,  111. 
Jacksonville,  Fla. 
Atlanta,  Ga. 
Baton  Rouge,  La. 
Salem,  Oreg. 
Boise,  Idaho. 
Rutland,  Vt. 


STORY  OF  THE  ADDING   MACHINE 


269 


Name  of  Firm 
Ziegler,  Joseph 
Zimmerman,  Edward 
Henderson,  James 
Jackson,  Thomas 
Cavanaugh,  Julia  M. 
Baldwin,  Serchson,  &  Co. 
Columbus  Security  Co.  (The) 
McDevitt,  Wm.  E. 
Townsend,  John  K. 
Underbill,  Francis 
Wright,  Benjamin 
Young,  Clarence 
O'Mara  &  Ormsbee 
Lewis,  Maurice 
Leonard,  Walter 
Walsh,  George 
Wallace,  Edward 
Thompson,  Jerome 
Taylor,  Henry  S. 
Miller,  C.  O.,  &  Co. 
Brown  &  Co 
Robinson  Mercantile  Co. 
Ober,  Theodore 
Gleason,  James 
Farrell,  James  T. 
McDowell  &  Kennedy 
MacKee,  Frederick 
Shaw,  James 
Silverman,  George  H. 
Delevan  &  Co.  (Inc.) 
O'Neara  Coal  Works  (The) 
O'Neill  Land  Co.  (The) 
Quinlan,  Frank  R. 
Murphy  &  Henderson 
McNulity  &  Bro. 
Reilly,  John  F. 
Curtis,  The  Henry,  Co 
Evans,  Samuel 
Watkins,  David 
Wendal,  Eugene 
Williams,  George 
Wilson,  Thomas 
Matthews,  Wm.  T. 
O'Connell,  Richard 
MacNeil,  Thomas  G. 


Business 

Real  Estate 

Stationery 

Real  Estate 

Stationery 

Lawyer 

Grocers 

Bonds  &  Securities 

Tailor 

Flour  &  Grain 

Printing 

Bankers 

Advertising 

Advertising 

Express 

Butcher 

Flour  &  Grain 

Dry  Goods 

Commission  Merchant 

Lawyer 

Grocers 

Accountants 

Furniture 

Automobiles 

Flour  &  Grain 

Tailor 

Photographers 

Wiring 

Grocer 

Flour  &  Grain 

Stationery 

Coal  &  Wood 

Real  Estate 

Potato  Dealer 

Fruit  Farmers 

Flour  &  Grain 

Architect 

Engineers 

Commission  Agent 

Advertising 

Furniture 

Carpets 

Grocer 

Carpets 

Advertising 

Butcher 


Address 
Akron,  Ohio. 
Omaha,  Nebr. 
Salt  Lake  City,  Utah. 
Jefferson,  Mo. 
New  York,  N.  Y. 
Columbus,  Ohio. 
Columbus,  Ohio. 
Helena,  Mont. 
Rawlins,  Wyo. 
Dixon,  Mont, 
Safford,  Ariz. 
Milton,  Mont. 
New  York,  N.  Y 
Austin,  Tex. 
Bangor,  Maine. 
Key  West,  Fla. 
Savannah,  Ga. 
Nashua,  N.  H. 
Augusta,  Maine. 
Portland,  Maine. 
Dallas,  Tex. 
Birmingham,  Ala. 
Cheyenne,  Wyo. 
Ogden,  Utah. 
Montpelier,  Vt. 
Wilmington,  Del. 
Hartford,  Conn. 
Houston,  Tex. 
Boise,  Idaho. 
Lincoln,  Nebr. 
Harrisburg,  Pa. 
Philadelphia,  Pa. 
Bangor,  Maine. 
Niagara,  N.  Y. 
Frankfort,  Ky. 
Portland,  Ore. 
Burlington,  Vt. 
Ogden,  Utah. 
Newport,  R.  I. 
Astoria,  Oreg. 
Detroit,  Mich. 
Selma,  Ala. 
Prescott,  Ariz. 
Hamilton,  Ohio. 
Salem,  Ore. 


270 


OFFICE   PRACTICE 


A  ame  of  Firm 
Maguire,  George  D. 
Wilson,  The  Sargent  Co. 
Cahill  Railway  Co. 
MacDonald  &  Rich  (Inc.) 
O'Connell,  Michael  J.  Co. 
Palmer,  Arthur  R. 
Peterson  &  Jameson 
Walker,  Sidney 
Warner,  Edward 
Scanlon,  Michael 
Robertson,  James,  &  Co. 
Upton,  Wm.  H.,  &  Bro. 
Vincent,  Charles  B.,  &  Co. 
Alden,  The  Henry  Co. 
Arnold,  Frank  J. 
MacHenry  Establishment 
O'Gorman,  Wm.  S. 
American  Can  Co. 
American  Lead  Pencil  Co. 
American  Printing  Co. 
Atlas  Portland  Cement  Co. 
Brown  &  Sharp  Mfg  Co. 
Brinks  Express  Co. 
Bryant  Electric  Co. 
Cadillac  Motor  Car  Co. 
Chester  National  Bank 
Corn  Exchange  National  Bank 
Evening  News  Association 
Farmers  National  Bank 
Flat  Top  Insurance  Co 
Franklin  Sugar  Refining  Co. 
Hackett  Coal  Co. 
Holeproof  Hosiery  Co. 
Kennedy  Biscuit  Works 
Mammouth  Garage 
Mellon  National  Bank 
National  Cash  Register  Co. 
National  Sugar  Refining  Co. 
Pennsylvania  Trust  Co. 
Primos  Chemical  Co. 
Russell  Mfg.  Co.  (The) 
Scranton  Coal  Co. 
Splitdorf  Electric  Co. 
Victor  Talking  Machine  Co. 
Walworth  Manufacturing  Co. 


Business 

Express 

Commission  Agents 

Electrical  Supplies 

Commission  Agents 

Accountants 

Woollen  Goods 

Fruits 

Chemist 

Bankers 

Printing 

Grocers 

Commission  Agents 

Grocers 

Bankers 

Advertising 

Electricians 

Engineer 

Canning  Supplies 

Pencils 

Printers 

Cement 

Manufacturers 

Express 

Electrical  Supplies 

Automobiles  &  Supplies 

Bankers 

Bankers 

Publishers 

Bankers 

Insurance 

Sugar 

Coal 

Hosiery 

Biscuits 

Garage 

Banking 

Cash  Registers 

Sugar 

Bankers 

Chemists 

Manufacturers 

Coal 

Electrical  Supplies 

Victrolas 

Manufacturers 


Address 
Buffalo,  N.  Y. 
Louisville,  Ky. 
New  Haven,  Conn. 
Providence,  R.  I. 
St.  Louis,  Mo. 
Adams,  Mass. 
Tampa,  Fla. 
Lexington,  Ky. 
Pierce,  Idaho. 
Atkinson,  Nebr. 
Monterey,  Cal. 
Richfield,  Utah. 
Baltimore,  Md. 
Helena,  Mont. 
Pittsburgh,  Pa. 
Denver,  Colo. 
Los  Angeles,  Cal. 
Bridgeport,  Conn. 
Hoboken,  N.  J. 
Fall  River,  Mass. 
New  York,  N.  Y. 
Providence,  R.  I. 
Chicago,  111. 
Bridgeport,  Conn. 
Detroit,  Mich. 
Chester,  Pa. 
Philadelphia,  Pa. 
Detroit,  Mich. 
Pittsburgh,  Pa. 
Bluefield,  W.  Va. 
Philadelphia,  Pa. 
Cedar  Grove,  W.  Va. 
Milwaukee,  Wis. 
Chicago,  111. 
Reading,  Pa. 
Pittsburgh,  Pa. 
Dayton,  Ohio. 
Long  Island  City,  N.  Y 
Reading,  Pa. 
Promos,  Pa. 
Middletown,  Conn. 
Scranton,  Pa. 
Newark,  N.  J. 
Camden,  N.  J. 
Kewanee,  111. 


STORY  OF  THE  ADDING   MACHINE 


271 


Bookkeeping  — Problems 

Using  the  following  Trial  Balance: 

i.     Open  Accounts — entering  the  Debits  and  the  Credits. 
Make  a  Trial  Balance. 
Close   the  Accounts 
Make  out  a  Balance  Sheet. 
Make  out  a  Profit  and  Loss  Statement. 

Trial  Balance 
THE   JULIA    RICHMAN   CORPORATION 


Proprietor's     a/c 

Cash 

Notes  Receivable 

Notes  Payable 

Merchandise  Purchases 

Merchandise  Sales 

Furniture  &  Fixtures 

Expense 

Real  Estate  (Cost  us) 

John  Rupert 

Samuel  Raymond 

Henry  Johnson 

Reynolds  &  Co. 

Jones  &  Son 


In  the  above  Trial  Balance  allow  the  following: 

Furniture  &  Fixtures  Depreciation   IO% 
Merchandise  Inventory  $500 
Expense  Inventory  #500 
Real  Estate  Depreciation  5% 


Dr. 

Cr. 

42783.66 

40000.00 
6289.03 

1500.00 
660.00 

500.00 
1600.00 

9687.36 
185-50 

7938.67 

293-I5 
1645.00 

735-00 

IOOO.OO 

30.00 
1316.20 

92.13 

70.00 
88.60 

749-30 

272  OFFICE   PRACTICE 

Listing  and  Non-Listing  Machines 

APPLICATION  OF  ADDITION 

to 
TRIAL   BALANCE 

of 
THE  JULIA  RICHMAN  CORPORATION 

Add  Debits  and  Credits  of  this  Trial  Balance: 

(If  machine  shows  that  the  Debit  side  equals  the  Credit  side, 
bookkeeper's  accounts  balance.) 

TRIAL   BALANCE 

of 
THE  JULIA  RICHMAN  CORPORATION 

July  12,  1921 


Dr. 

Or. 

J.  R.  Corporation   (Prop's  a/c) 

40000.00 

Cash 

42783.66 

6298.03 

Notes  Received 

1500.00 

500.00 

Notes  Payable 

669.00 

1600.00 

Merchandise 

9687.36 

7838.67 

Furniture  &  Fixtures 

185.50 

Expense 

293.15 

Real  Estate  (Cost  us) 

1645.00 

John  Rupert 

765.00 

160.07 

Samuel  Raymond 

IOOO.OO 

1316.00 

Henry  Johnson 

92.00 

70.00 

Reynolds  &  Co. 

88.60 

M.  Jones  &  Son 

749-30 

STORY  OF  THE  ADDING   MACHINE 


2/3 


TRIAL  BALANCE 

of 
THE  JULIA  RICHMAN  CORPORATION 

July  20,  1921. 


J.  R.  Corporation  (Prop's  a/c) 

Cash 

Merchandise 

Expense 

Office  Fixtures 

Notes  Received 

Notes  Payable 

Ferris  &  Co. 

French  &  Co. 

Harris  &  Co. 

Johnson  &  Co. 


196.00 

6220.00 

4942.69 

3358.50 

8740.00 

5065.40 

450.00 

187.50 

780.00 

254.70 

540.00 

1046.00 

1045.00 

745.00 

198.13 

75-6i 

72.60 

487.20 

192.60 

92.11 

Using  the  following  data,  make  out  a  balance  sheet  of  present 
date  for  The  Julia  Richman  Corporation,  421  East  88th  Street, 
New  York: 

Cash  on  hand  $987.50. 

Cash  in  bank  $458.76. 

H.  Harris  owes  us  $529.50. 

J.  Brown  owes  us  $873.72. 

Merchandise  Inventory  on  hand  $986.75. 

Accounts  Receivable: 

T.  Black  $451.21. 
Rawkins  &  Son  $386.10. 
Smith  &  Foley  $735.45. 
Lane  &  Court  $254.78. 
James  Talbott  $143.25. 
Babott  &  Bros.  $345.78. 
Brackon  &  Jones  $251.59. 
H.  Hogan  $974-45- 
J.  Avery  $471.45- 


274  OFFICE    PRACTICE 

Notes  Receivable  $396.75. 
Furniture  &  Fixtures  $263. 
Notes  Payable  $473.56. 
Mortgage  Payable  $875.50. 
Loans  Payable  $526.40. 
We  owe  J.  Harrison  $264.87. 

Accounts  Payable: 

B.  Black  $173.89. 

T.  Thompson  $184.65. 
H.  Howell  $184.56. 
J.  Samuels  $236.47. 

C.  Lawrence  $452.68. 
H.  Williams  $256.70. 

Find  the  Capital  or  the  Present  Worth. 

Accounting  and  Business  Practice,  First  Term 

1.  On  Jan.   I,  1920,  A.  H.  Warner  began  business  investing 
cash  $3500. 

On  Dec.  31,  1921,  his  books  show  the  following  facts: 

His  bank  balance  is  $5461.20.  He  has  $174.78  in  the  cash  drawer. 
An  inventory  of  merchandise  shows  that  his  stock  is  worth  $3475. 
He  values  his  furniture  and  fixtures  at  $820.  There  are  office  sup- 
plies worth  $35  on  hand.  He  owes  A.  D.  Smith  $2345  f°r  mer- 
chandise purchased  during  the  year.  S.  E.  Dodge  owes  him  $365, 
and  F.  A.  Walton  $250.  A  note  due  at  the  Commercial  Bank  for 
$2500  will  fall  due  in  60  days.  He  has  in  his  possession  a  note 
signed  by  F.  S.  Good  for  $1500. 

Make  out  a  Balance  Sheet  to  show  A.  H.  Warner's  Present 
Worth,  and  Net  Gain  for  the  year. 

2.  Your  bank  balance  in  the  Commercial  Exchange  Bank  on 
May  ist  was  $2305.18. 

May  ist  you  paid  rent,  $75.50,  to  the  landlord,  A.  C.  Hart. 
May  2nd  you  bought  of  E.  S.  Harris  375  yards  of  silk  a:  .*? 
a  yard,  terms  5/io.n/3O. 


STORY  OF  THE  ADDING  MACHINE 


275 


Gave  your  check  in  full  payment  less  discount. 

May  3rd  you  deposited  contents  of  cash  drawer,  $176.85. 

May  4th  deposit  I.  E.  Wells  check  for  $368.60. 

(a)   Write  check  of  May  2nd. 

(.b)   Show  records  kept  by  you  on  your  check  book. 

(c)  The  bank  balance  as  shown  on  bank  statement  is  $1995.63. 
Make  up  a  reconciliation  statement  to  account  for  dif- 
ference shown  by  your  check  book. 

3.     T.  A.  Walsh's  books  show  the  following  accounts: 
Purchases  Inventory 


Apr.   i   2328.50 

3     694.75 

19     468.59 


Apr.  7  47.85  Apr.   i  3400.00 


Sales 


Apr.   20  165.20 


Apr.  2  265.00 

12  1938.50 

19  2867.75 

30  3126.50 


Apr. 


Furniture  &  Fixtures 


Apr.   i     900.00 


Expense 


i  426.00 
15  69.85 
30  126.00 


On  April  3Oth  inventory  of  mdse  shows  $3120  worth  of 
goods  on  hand.  The  office  supplies  on  hand  valued  at 
$63.85.  The  furniture  and  fixtures  have  depreciated  10%. 
Close  the  above  accounts  and  set  up  a  Loss  and  Gain 
Account  showing  F.  A.  Walsh's  net  gain  for  the  month. 


276  OFFICE   PRACTICE 

V  • 

4.  Henry  Collins,  of  Louisville,  Kentucky,  bought  of  Harri- 
son &  Smith,  of  Boston,  Mass.,  on  Sept.  n,  1920,  on  ac- 
count, the  following  items.  Terms:  Net  30  days,  2%  15 
days,  5%— 5  days- 

8  pieces  of  Corduroy: 

26,     25,     28,     29,     30,     26,     27,     29  yds  @  $1.20 

4  pieces  of  Cashmere: 

5°>  53>  5J>  52  Yds  @  21-16  2/3 

Write  the  invoice.     Make  out  the  check  on  the  First  National 
Bank  if  payment  is  made  on  September  5,  1920. 

Sept.  i,  1920     John  Harrison  commenced  the  Flour  and  Grain  busi- 
ness at  2160  Broadway,  investing  $3500. 

"     2,  Paid  rent  of  store  $75,   and  $25  for  stationery  and 

stamps. 
3,  Bought  merchandise  for  cash  $550  (50  bbls  Flour). 

"     4,  Bought    merchandise   on    account   from    Frank   Gray 

$25  (30  bushels  Wheat). 

"     5,  Bought   merchandise   for   cash   from   H.    Hogan   $27 

(25  bushels  of  oats). 

"    6,  Mr.   Harrison   drew  $30  from   business   for  his  own 

private  use. 

"    8,  Sold  merchandise  for  cash  $420  (25  bbls  Flour). 

"    9,  Sold   merchandise  on   account  to  Henry   Davis  $32 

(15  bushels  of  what). 

"  10,  Paid  salaries  $150. 

"  n,  Henry  Davis  paid  us  $15  to  apply  on  account. 

"  12,  We  paid  Frank  Gray  $20  to  apply  on  account. 

Merchandise   Inventory  $475* 

(a)  Enter  the  above  transactions  under  the  proper  accounts. 

(b)  Prepare  a  trial  balance  of  totals. 

(c)  Close  the  cash  and  merchandise  accounts. 

1.  Use  a  separate  account  for  Mdse  Purchases. 

2.  Use  a  separate  account  for  Mdse  Sales. 

3.  Use  a  separate  account  for  Mdse  Inventory. 


STORY  OF  THE  ADDING  MACHINE          277 

Edward  M.  Brown.     Enter  these  transactions  of  Edward  M. 
Brown  in  your  General  Ledger  in  the  proper  accounts: 

Made  investment  £75000. 

Nov.  i  Bought  of  A.  Dean  for  cash  500  bu.  wheat  at  £1.00. 

Nov.  2  Sold  F.  Lay  for  cash  100  bu.  wheat  at  $1.15. 

Nov.  3  Bought  of  H.  Barr  for  cash  50  bu.  beans  at  $3.00. 

Nov.  4  Sold  Bell  Bros,  for  cash  30  bu.  beans  at  £5.50. 

Nov.  5  Bought  of  H.  Leary  for  cash  office  supplies  for  $15.00. 

Nov.  6  Bought  of  Thos.  Daly  for  cash  200  bu.  millet  at  £1.00. 

Nov.  7  Sold  S.  Allen  for  cash  100  bu.  millet  at  £1.00. 

Nov.  9  Paid  John  Ray  cash  for  repair  work  $6.00. 

Nov.  10  Bought  a  typewriter  for  cash  $75.00. 

Nov.  ii  Bought  a  desk  for  cash  £125.00. 

Nov.  12  Sold  J.  Morse  for  cash  400  bu.  beans  at  £3.00. 

Merchandise  Inventory  $500.     Expense  Inventory  $200. 


H.  Harrison  began  the  carpet  business  at  410  Main  Street, 
Buffalo,  N.  Y.,  investing  cash  £8500. 

May      i     Bought  of  J.  Olain  for  cash  60  yds  velvet  carpet  at  £1.25. 

May      i     Sold  A.  Dale  for  cash  25  yds  of  carpet  at  £1.75. 

May      2     Paid  N.  Milton  cash  for  rent  of  store  £75.00. 

May      5     Bought  of  W.  Jackson  for  cash  40  yds  Brussels  carpet  at 

£1.25. 

May      5     Sold  W.  Welton  for  cash  100  yds  Brussels  carpet  at  £7.50. 
May     6     Bought  of  J.  Lee  on  account  20  rugs  at  £5.75  each. 
May     7     Sold  J.  Drew  on  account  10  rugs  at  £6.75  each. 
May     8     Sold  L.  Hicks  for  cash  5  rugs  at  £6.75  each. 
May     9     Bought  of  D.  Pearson  for  cash  100  yds  ingrain  carpet  at 

£8.50  a  yd. 

May    10     Sold  A.  Dervy  for  cash  50  yds  ingrain  carpet  at  £1.25. 
May    ii     Received  of  J.  Drew  cash  to  apply  on  account  £25.00. 
May    12     Bought  of  A.  S.  Servance  for  cash,  £0.45  a  yard,  200  yds  of 

matting. 

May    14     Sold  H.  Price  for  cash  100  yds  matting  at  £0.60  a  yd. 
May    15     Sold  Albert  Owen  on  account  40  yds  matting  at  £0.63  a  yd. 
May    17     Received  of  Albert  Owen  cash  in  full  of  account. 

Expense  Inventory,  $5.00,     Merchandise  Inventory,  $125,00. 


278  OFFICE   PRACTICE 

After  you  enter  the  accounts  find  the  Total  Cash  Receipts  and 
the  Total  Cash  Payments:  Balance  Cash  Account. 

Take  a  Trial  Balance:  Make  a  Profit  and  Loss  Statement  and 
a  Balance  Sheet. 

After  you  enter  the  Merchandise  Purchases  and  Merchan- 
dise Sales,  find  the  Total  Purchases  and  the  Total  Sales.  Use 
separate  accounts  for  each. 

Edward  M.  Hogan  began  the  grain  business  at  60  West 
Street,  Hartford,  Conn.  Enter  these  transactions  in  your 
General  Ledger  in  the  proper  accounts: 

Made  Investment  #95000. 

Nov.  i  Bought  of  A.  Dean  for  cash  500  bu.  wheat  at  $i. 

Nov.  2  Sold  F.  Lay  for  cash  ioo  bu.  wheat  at  $1.15. 

Nov.  3  Bought  of  H.  Barr  for  cash  50  bu.  beans  at  #3.00. 

Nov.  4  Sold  Bell  Bros,  for  cash  30  bu.  beans  at  $3.50. 

Nov.  5  Bought  for  cash,  office  supplies  for  $25.00. 

Nov.  6  Bought  of  Thos.  Daly  for  cash  200  bu.  millet  at  $1.00. 

Nov.  7  Sold  S.  Allen  for  cash  ioo  bu.  millet  at  $1.00. 

Nov.  8  Paid  for  repair  work  $9.00. 

Nov.  9  Bought  a  typewriter  for  cash  $75.00. 

Nov.  10  Bought  a  desk  for  cash  $125.00 

Nov.  ii  Sold  J.  Morse  for  cash  400  bu.  beans  at  $3.00. 

Merchandise  Inventory,  $500.00.     Expense  Inventory,  $200.00. 

H.  Hodgetts  began  the  carpet  business  at  410  Main  Street, 
Buffalo,  New  York,  investing  cash  $9500. 

May  i  Bought  of  J.  Olain  for  cash  60  yds  velvet  carpet  at  $1.25. 

May  2  Sold  A.  Dale  for  cash  25  yds  of  carpet  at  $1.85  per  yd. 

May  2  Paid  for  rent  of  store  $95.00. 

May  5  Bought  of  W.  Jackson  for  cash  40  yds  Brussels  carpet  at 

$1.25. 

May  5  Sold  W.  Welton  for  cash  ioo  yds  Brussels  carpet  at  $0.75  yd. 

May  6  Bought  of  J.  Lee  on  account  20  rugs  at  $5.75  each. 

May  7  Sold  J.  Drew  on  account  10  rugs  at  $9.75  each. 

May  8  Sold  L.  Hicks  for  cash  5  rugs  at  $6.75. 


STORY  OF  THE   ADDING   MACHINE          279 

May     9     Bought  of  D.  Pearson  for  cash  100  yds  ingrain,  carpet  at 

$4.50  a  yd. 

May  10  Sold  A.  Dervy  for  cash  50  yds  ingrain  carpet  at  $1.25. 
May  ii  Received  of  J.  Drew  cash  to  apply  on  account  $35.50. 
May  12  Bought  of  A.  S.  Servance  for  cash  at  $0.45  a  yd  200  yds 

matting. 

May    14     Sold  H.  Price  for  cash  100  yds  matting  at  $0.60  yd. 
May    15     Sold  Albert  Owen  on  acount  40  yds  matting  at  $0.63  a  yd. 
May    15     Paid  J.  Lee  check  for  $50.00  to  apply  on  account. 
May    17     Received  of  Albert  Owen  cash  in  full  of  account. 

Expense  Inventory,  $5.00.     Merchandise  Inventory,  $150.00. 

After  you  enter  the  accounts  find  the  Total  Cash  Receipts 
and  the  Total  Cash  Payments;  Balance  Cash  Account. 

Take  a  trial  balance,  make  a  Profit  and  Loss  Statement  and 
a  Balance  Sheet. 

After  you  enter  the  Merchandise  Purchases  and  Merchandise 
Sales  find  the  Total  Purchases  and  the  Total  Sales. 

1.  Journalize  the  following  transactions;    post  them   to  the 
Ledger;    take   a  Trial   Balance;    close   accounts;    or  enter 
the  following  in  accounts: 

April     i,   1921     Student  commences  the  Wholesale  Dry  Goods, 
business,  investing  cash  $7658. 

3,  Paid  for  stationery,  cash  $25. 

4,  Bought  merchandise  of  H.  Thomas  on  account,  $786. 

5,  Sold  merchandise  to  H.  Martin  on  a  note  for  $250. 

6,  Sold    merchandise    to   H.    Wells   on    a   3O-day   note 
with  interest  at  6%  for  $133. 

7,  Bought  merchandise  of  G.  Lane  on  our  note  for  $598. 
9,  Received  cash  $178  for  merchandise  sold  to  R.  Sudnik. 

10,  Received   cash  $345   from  H.   Martin  for  the  note 

received  April  5th. 

On  April  30  the  merchandise  on  hand  is  estimated  to  be 
worth  $878. 

2.  The  note  received  April  7th,  was  discounted  April  I5th  at 
the  Chase  National  Bank.     How  much  was  received  for  it? 

How  much  was  the  Bank  Discount  on  the  note? 


280  OFFICE   PRACTICE 

3.  Write  the  note. 

4.  April  1 5th,  A.  B.  Studwell,  a  commission  merchant,  received 
a  consignment  of 

400  bu.  of  apples. 
1 200  bu.  of  potatoes. 

from  James  L.  Kirk,  of  Monticello,  N.  Y.     He  made  the 
following  sales: 

250  bu.  of  apples      @  $2.40  a  bu. 
150          "  potatoes  @  $2.50" 
1200     "     "  apples      @      .80"  " 

A.  B.  Studwell  paid  $7.85  for  freight.     Other  charges  were 
as  follows: 

Crating  $4.75 

Insurance  $2.50 

Guaranty  2% 

Commission  5% 

A.  B.  Studwell  rendered  an  Account  Sales.     Make  out  the 
Account  Sales. 

Record  the  following  transactions  on  Ledger  Paper: 

Jan.     i  F.  L.  Gleason  began  the  grocery  business  with  an  investment 
of  cash  $4500. 

2  He  paid  rent  for  one  month  $175. 

3  Bought  merchandise  for  cash  $1800. 

4  Sold  merchandise  on  account  to  J.  Kane  $975. 

5  Bought  merchandise  on  account  from  K.  Wagner  $450. 
5  Sold  merchandise  for  cash  to  L.  Conners  $900. 

7  J.  Kane  paid  $450  by  check  to  apply  on  account. 

8  Paid  K.  Wagner  #150  in  full  settlement  of  his  account. 

9  F.  L.  Gleason  withdrew  $480  from  business  for  private  use. 

10  Bought   merchandise  on   account  from  Harrison   &  Fisher 

£840. 

11  Paid  salaries  $165. 

Merchandise  Inventory,  Jan.  jo,  $2200. 


STORY  OF  THE  ADDING   MACHINE          281 

Enter  the  transaction  in  the  accounts,  make  a  trial  balance  of 
totals,  balance  the  Cash  account  and  close  the  Merchandise  ac- 
counts. 

Oct.     I  R.  Sudnik  began  business,  investing  cash  $7500. 

2  Paid  one  month's  rent  $60. 

3  Bought  merchandise  for  cash  $530.25. 

4  Bought  stationery  and  supplies  for  office  use  $18.75. 

5  Sold  merchandise  for  cash  $550. 

6  Bought  of  Jackson  &  Co.  on  account  $250. 

8     Sold  to  Freeman  &  Sons  on  account  merchandise  $125. 

8  Paid  Jackson  &  Co.  $175  to  apply  on  account. 

9  Sold  merchandise  to  Gregory  &  Co.  on  account  $322.25. 

10  Bought  on  account  merchandise  from  E.  P.  Bacon  $900. 

11  Received  cash  to  apply  on  account  from  Freeman  &  Sons. 

12  Paid  Bacon  $450  to  apply  on  account. 
14  Paid  for  clerk  hire  $50. 

14  Paid  for  stamps  and  postals  $15. 

15  Sold  merchandise  to  Henry  Janes  for  cash  $255. 

20     Bought  from  Smith  &  Brown  merchandise  for  cash  $350. 

Merchandise  Inventory,  $537.50. 

Enter  transactions  in  the  accounts.  Make  a  trial  balance  of 
totals.  Balance  the  Cash  account  and  close  the  Merchandise 
accounts. 

Make  out  a  check  in  each  case  where  merchandise  was  bough 
for  cash. 

Make  out  a  check  where  payment  was  made  on  account  by 
the  Proprietor. 

Assignment: 

AIM — To  introduce  Payroll,  Bank  Account,  Checks,  Receipts 
and  Money  Order. 

You  are  bookkeeper  for  the  Dry  Goods  firm  of  Henry  Allen 
&  Co.,  record  the  following  business  transactions: 

Henry  Allen  &  Co.  began  business  on  November  3,  1920  at 
361  Main  St.  your  city  with  an  investment  of  $1509. 


282  OFFICE   PRACTICE 

Mr.  Allen  has  decided  to  open  a  bank  account,  and  has 
selected  The  Second  National  Bank  of  Stamford,  Conn,  as  the 
institution  with  which  to  do  business.  (Open  the  bank  account.) 

Make  out  a  deposit  slip  for  the  investment  of  $1500.  Take 
your  money  or  check  to  the  bank  teller  and  have  him  enter  the 
amount  of  the  deposit  in  your  bank  pass  book.  Make  a  record 
of  this  transaction  on  the  stub  of  your  check  book.  Make  the 
entry  in  your  cash  book. 

Nov.     3.  Paid  N.  Y.  Herald  for  adv.  in  daily  edition,  $50. 

Make  out  the  check  for  the  same  and  record  in  cash 
book  and  on  stub  of  check. 

Nov.     4.  Paid  for  office  stationery,  $5  (Cash). 

Nov.     5.  Bought  of  Brown  &  Co.  the  following  invoice: 

5   pcs.  English  Serge  28,  32,  30,  26,  29  at  $1.35 

a  yd. 

2  pcs.  Royal  Flannel  27,  36,  at  $.37  1/2  a  yd. 
4  pcs.  Holly's  Landsdown  30,  42,  61,  47  at  $.90 
a  yd. 

Terms:    3/10,  2/5,  n/6o. 

Trade  Discount  5%,  10%  &  15%. 

Make  out  a  duplicate  of  the  invoice  and  verify  the 
extensions  on  the  calculating  machine. 

Nov.  6.  Send  the  firm  check  to  the  owner  of  the  building, 
Smith  &  Brown,  for  the  rent  of  the  store  for  the 
month  of  November,  $75,  and  record  the  necessary 
data  on  the  stub  of  the  check  book. 

Nov.     7.  Sold  Mrs.  H.  Jenkins: 

15  yds  Yorkshire  Muslin  at  $.06  per  yd. 

21   yds  English  Serge  at  $1.36  per  yd. 

She  paid  by  giving  you  her  check  for  the  amount. 

Make  out  a  receipt  for  this  cash  sale  of  merchandise. 


STORY  OF  THE  ADDING   MACHINE          283 

(Is  a  receipt  necessary  in  a  case  similar  to  this  trans- 
action? Explain  cancelled  check  as  being  used  as  a 
receipt  or  voucher.) 

Nov.  8.  Paid  check  to  Gas  &  Electric  Co.  for  bill  rendered, 
2567  cubic  feet  at  $.80  per  M. 

Nov.  10.  Bought  of  Gimbel  &  Co.  on  60  days'  Terms  3/5,  2/10 . 
n/6o.     Trade  discount  5%,  10%  &  2%. 
978  yds  Silk  at  $1.54  per  yd. 
384  yds  Poplin  at  $1.37  per  yd. 
754  yds  French  Storm  Serge  at  $.45  per  yd. 

Nov.  ii.  Sold  Mary  Bliss: 

25  yds  French  Serge  at  $1.35  per  yd. 
16  yds  Silk  Poplin  at  $2.25  per  yd. 

Make  out  a  statement  and  receipt  it,  as  she  settled 
the  account  by  giving  James  Bliss's  check.  See  that 
the  check  is  properly  indorsed. 

Nov.  13.  Send  Smith,  Brown  &  Co.  a  money  order  for  $100  to 
pay  for  250  yds  of  Fancy  Prints  at  $.04  per  yd. 

Nov.  14.  Paid  $.58  in  cash  for  a  package  by  Parcel  Post,  insured. 

Nov.  15.  Make  out  the  payroll  for  the  employees  of  the  firm. 
Rate  per  day  of  ten  hours  given;  day  consists  of  10 
hours  work  per  day. 

Employees: 

F.  Smith,  Manager,  $5  per  day,  Mio,  Tio,  W9,  Tio, 

F9,  Sio  Total  for  week       

H.  Scheller,  Clerk,  $3  per  day,  Mio,  T9,  Wio,  T9, 

F8,  Sio. 
R.  Gorden,  Clerk,  $3  per  day,  M9,  Tio,  W9,  Tio, 

F9,  S9. 
F.  Walker,  Cashier,  $2.50  per  day,  Mio,  T9,  W8,  T7, 

Fio,  S9. 


284  OFFICE   PRACTICE 

Student,  Bookkeeper,  $3  per  day,  Mio,  Tio,  Wio, 

T9,  F9,  Sio. 
H.  Ernest,  Office  Boy,  $1.25  per  day,  Mio,  Tio,  Wio, 

T9,  Fio,  89. 
J.  Lang,  Janitor,  $1.75  per  day,  Mio,  Tio,  Wio,  Tio, 

F9,  Sio. 

Make  out  the  payroll  and  find  the  amount  due  each 
employee  and  the  total  amount  of  the  payroll  for  the 
employees. 

Make  out  a  currency  memorandum. 

Make  out  a  payroll  check  and  have  the  Treasurer  of 
the  firm  or  the  person  who  is  authorized  to  sign  all 
firm  checks,  sign  it  for  you. 

Nov.  17.  Send  a  check  for  $100  to  the  Underwood  Typewriter 
Co.  for  a  typewriter  for  the  office.  Make  out  check 
and  record  necessary  data  on  the  stub  of  your  check 
book. 

Nov.  1 8.  Paid  in  Cash  $15  for  insurance  on  goods  in  the  store. 

Nov.  18.  Pay  Gimbel  &  Co.  for  merchandise  purchased  on 
Nov.  10.  Deduct  the  cash  and  trade  discounts  al- 
lowed, and  send  check  for  the  amount  due.  (Explain 
the  difference  between  the  net  amount  of  check  sent 
and  the  entry  in  your  cash  book). 

Nov.  20.  Received  cash  for  petty  sales  to-day,  $10.25. 

Nov.  21.  You  received  a  statement  from  the  Bank,  also  the 
vouchers  or  cancelled  checks.  This  statement  shows 
your  total  credits,  total  debits,  and  the  bank  balance. 
Reconciliate  your  bank  balance. 
Check  up  your  check  book  from  the  record  on  the 
stubs  with  statement  received  from  the  Bank.  Ad- 
just the  difference  if  necessary. 


STORY  OF  THE  ADDING  MACHINE          285 

Similar  problem: 

Total  Deposits 10205.94 

Total  Checks     6009.48 

True  Bank  Balance 4196.46 

Checks  Out: 
Nos. 

35  103.63 

27  66.37 

45  90-04 

52  283.69  543.73 


Bank's  Balance   4740.19 


True  Balance 4196.46 

Note:  Enter  all  of  the  above  transactions  in  the  proper  accounts,  all  pur- 
chases and  sales  in  the  merchandise  sales  and  purchases  accounts  and 
cash  transactions  in  the  cash  account. 

Nov.  30.  We  find  that  we  have  on  hand  merchandise  valued  at 
at  $254  after  inventory  has  been  taken. 


Calculations  and  Accounts 

I.  Jan.  i  F.  A.  Jonson  began  business,  investing  cash  $7800. 
On  Dec.  31  his  books  show  the  following  results:  Cash 
Balance  $8425.50.  A.  B.  Hendricks  owes  him  $2400;  he 
owes  F.  T.  Green  $1425;  he  also  owes  the  Commercial 
Bank  of  N.  Y.  $3400  on  a  6o-day  note;  his  furniture  is 
valued  at  $450;  there  are  stationery  and  office  supplies  on 
hand  worth  $125,  and  real  estate  worth  $3000. 

Make  a  balance  sheet  showing  F.  A.  Jonson's  present  worth 
and  net  gain  for  the  year  1921. 


286  OFFICE   PRACTICE 

2.  Open  accounts  on  ledger  paper  and  enter  the  following  trans- 
actions. 

July      I  You,  as  proprietor,  invest  cash  $5000. 

2  Buy  merchandise  from   F.   C.  Arnold,   terms   30 
days  $2500. 

2  Buy  merchandise  for  cash  $1300. 

3  Paid  rent  $75. 

4  Bought  delivery  wagon  $1200. 
6  Paid  office  salaries  $40. 

8  Sold  merchandise  for  cash  $460. 

9  Sold  merchandise  to  J.  Brown  $1800. 

10  Proprietor  withdrew  for  private  use  cash  $50. 
Inventory.    Merchandise  $1900 

Delivery  wagon.  .  .$1000 

Close  the  accounts.     Show  the  profit  and  loss. 

3.  What  is  the  effect  of  the  following  transactions. 

1.  Paid  James  Rice  $100  on  account. 

2.  Paid  rent  in  advance  $150. 

3.  Proprietor  presented  $25  worth  of  merchandise  from  his 

stock  to  his  daughter. 

4.  Bought  merchandise  on  account  from  A.  Hern,  $200. 

5.  Received  from  the  Brown  Co.  a  check  for  $50  for  having 

the  best  window  display  on  their  goods. 

4.  The  bank's  statement  of  Nov.  30  shows  that  during  the 
month  I  have  deposited  $8427.85   and  that  my  cancelled 
checks    amount    to   $4787.92.     My    check    book    shows    a 
balance  of  $3139.93.     Checks  outstading  are  as     follows: 

#68,  $50;   #72,  $150;   #75,  $300. 

Make   a   statement   reconciling   bank   balance   and   check- 
book balance. 


STORY  OF  THE  ADDING  MACHINE          287 

Telephone  Directory 

New  York  City 

Look  up  the  following  in  the  General  Telephone  Directory, 
and  write  the  name  of  the  Firm  or  Person,  address,  telephone 
exchange,  and  telephone  number: 

Astor  Safe  Deposit  602  West  141   Street 

Underwood  Typewriter  Co.         O'Mara  &  Ormsbee 
Hotel  Marseilles  Mount  Sinai  Hospital 

Bellevue  Hospital  Mayor's  Office,  City  Hall 

Morgan  O'Brien,  Law  Office      N.  Y.  Eye  and  Ear  Infirmary 
Julia  Richman  High  School  at  421  East  88th  Street 
Send    an    Emergency   call    to   the   Lenox   Exchange    for   an 
ambulance. 

National  Biscuit  Col,  Sales  Agency. 

Lost  Article  Department,  Grand  Central  Terminal. 

Washington  Heights  Branch,  N.  Y.  Public  Library. 

Burroughs  Calculating  Machine  Co.,  Repair  Department. 

Roneo  Company,  Department  of  Repairs. 

Elliott-Fisher  Co.,  Sales  Department. 

A.  B.  Dick  Mimeograph  Co.,  Repair  Department. 

Library  Bureau,  Sales  Department. 

Dalton  Adding  Machine  Co.,  Repair  Department. 

Interborough  Rapid  Transit  Co.,  General  Offices. 

Irving  National  Bank. 

J.   D.  Hamill,  M.D. 

Andrew  Davey,  Inc. 

Century  Magazine. 

Bankers'  Trust  Company. 

Public  School  1 86  at  West  145 th  Street. 

Western  Union  Telegraph  Co.,  Messenger  Department. 

A.  B.  Altman,  Art  Department. 

Consult  the  Classified  Telephone  Directory  and  give  the 
name,  address,  and  the  telephone  number  of  ten  (10)  lawyers, 


288  OFFICE    PRACTICE 

accountants,  druggists,  doctors,  dry  goods  concerns,  hospitals, 
butchers,  contractors,  plumbers,  and  real  estate  concerns. 

Give  the  names  and  addresses  with  their  telephone  numbers 
of  fifteen  (15)  business  men  whose  telephone  is  listed  in  the 
following  telephone  exchanges  in  New  York  City 

Rector  Broad  Madison  Square        Lenox 

Schuyler         Chelsea  Riverside  Audubon 

Grammercy        Murray  Hill 

Plan  your  telephone  conversation  in  each  case.  Make  out  a 
memorandum  of  each  telephone  call — Outgoing  and  Incoming 
calls. 

Make  out  a  memorandum  of  the  following  telephone  num- 
bers, indicating  Name  of  Firm,  Address,  Telephone  Exchange, 
and  Telephone  Number: 

1.  Astor  Safe  Deposit,  602  West  14151  Street. 

2.  Underwood  Typewriter  Co.,  Repair  Department. 

3.  Julia  Richman  High  School,  East  yyth  Street,  Annex. 

4.  Send  an  Emergency  call  to  the  Broad  Exchange  for  an  ambulance. 

5.  O'Mara  &  Ormsbee,  320  Fifth  Avenue. 

6.  National  Biscuit  Co.,  General  Office — Sales  Agency. 

7.  Information  Bureau,  New  York  Central  R.  R. 

8.  Lost  Article  Department,  Grand  Central  Terminal. 

9.  Hotel  Marseilles,  Pennsylvania,  Commodore,  and  Astor. 

10.  Mount  Sinai  Hospital. 

11.  Bellevue  Hospital. 

12.  Mayor's  Office,  City  Hall. 

13.  United  Cigar  Store,  #16,  at  352  6th  Avenue. 

14.  Morgan  J.  O'Brien,  Law  Office. 

15.  N.  Y.  Eye  and  Ear  Infirmary. 

1 6.  Washington  Heights  Branch  Public  Library. 

Look  up  Telephone  Exchange  and  Number  of  15  business 
men  whose  telephone  is  listed  in  Rector,  Broad,  and  Madison 
Square.  After  listing  the  telephone  number,  plan  your  con- 
versation before  telephoning. 


STORY  OF  THE   ADDING   MACHINE          289 

Suburban  Telephone  Directory 

Section  2:      Long  Island 
2:      New  Jersey 
3:      Rockland  County 
4:      Westchester  County 
5:      Connecticut   (Darian, 

New  Canaan  and  Stamford) 

Make  out  a  memorandum  of  the  following,  placing  telephone 
numbers  to  the  right  of  the  names  and  addresses: 

Charles  Frank  Cartledge,  Locust  Valley,  L.  I. 

Fred  Cort.  Cedarhurst,  L.  I. 

R.  V.  C.  Theatre,  241  Merrick  Road,  L.  L 

H.  M.  Young,  Woodhaven,  L.  I. 

Acker,  Merrall  &  Condit  Co.,  Montclair  Store, 

599  Bloomfield  Avenue. 
The  Bellevue  Hotel,  Bay  Mead,  N.  J. 
Burroughs  Adding  Machine  Co.,  126  Market  St.,  N.  J. 
The  Coast  Service  System  Emply,  Kemth  Bldg,  N.  J. 
National  Bank,  390  George  Street,  New  Rochelle. 
Sperry  &  Hutchinson,  n  Division  Street,  N.  J. 
Stamford  Gas  &  Electric  Co.,  n  Bank  Street,  Stamford. 
Adams  Express  Co.,  17  Union  Avenue,  New  Rochelle 

(Westchester  Division). 

American  Express  Co.,  26  Warburton  Avenue,  Yonkers. 
King  School  Inc.,  Conn.  Division,  Stamford. 
Red  Cross  Headquarters,  Conn.  Division,  Stamford. 
Borden's  Condensed  Milk  Co.,  Brooklyn,  N.  Y. 
James  Butler  Inc.,  Cedarhurst,  L.  I. 
Huntington  Public  School,  Huntington,  L.  I. 
Long  Island  Railroad,  Belleport,  L.  I. 
Archibald  MacFarland,  Freeport,  L.  L 
Post  Office,  Glen  Cove,  L.  I. 
South  Side  High  School,  Rockville  Centre,  L.  I. 


29o  OFFICE    PRACTICE 

Adams  Express  Co.,  Belmar,  N.  J. 

Atlantic  &  Pacific  Tea  Co.,  Newark,  N.  J. 

Delaware,  Lackawanna  &  Western  Coal  Co.,  Summit,  N.  J. 

Irving  DeWitt,  Red  Bank,  N.  J. 

Stamford  High  School,  Stamford,  Conn. 

Clerk's  Office,  Babylon,  L.  I. 

Bullinger's  Post  Office,  Express,  and  Freight  Guide 

This  book  contains  the  names  of  every  post  office,  railroad 
station,  boat  landing  and  United  States  ports,  with  the  railroad 
or  water  route  on  which  every  place  or  the  nearest  communi- 
cating point  is  located,  and  the  shipping  directions  by  express 
or  freight  line  from  New  York  City. 

For  any  place  not  located  directly  on  a  railroad  it  gives  the 
nearest  railroad  station.  It  designates  which  post  offices  are 
money  order  offices,  and  the  location  of  county  seats. 

On  pages  57  to  902  are  the  names  of  all  the  post  offices  and 
all  the  railroad  stations  in  the  United  States.  All  names  printed 
in  roman  type  are  post  offices. 

R.  F.  D.  means  rural  free  delivery.  Mail  matter  for  those 
places  should  bear  the  name  of  the  post  office  from  which  the 
rural  delivery  is  made.  The  names  to  which  a  star  is  prefixed 
are  money  order  post  offices. 

The  names  in  capital  letters  are  state  capitals. 

The  names  followed  by  a  small  c.  h.  are  county  seats. 

Assignment: 

State  the  route  or  nearest  station  on  which  the  following 
place,  county  and  state  is  located.  Also  state  the  express  com- 
pany which  delivers  packages  in  New  York.  State  whether 
the  place  is  a  money-order  post  office  or  a  R.  F.  D.  station. 

Abbott,  Hill  County,  Texas.  Arrington,  Nelson,  Va. 

Aron  Park,  De  Soto,  Fla.  Belmont,  Wabash,  111. 

Buffalo,  Erie,  New  York.  Deep  River,  Middlesex,  Conn. 

Haynesville,  Richmond,  Va.  Knoxville,   Knox,  Tenn. 


STORY  OF  THE  ADDING  MACHINE          291 

McDonald,  Mima  Walker,  Ala.  Milwaukee,  Wis. 

Zona,  Benton,  Mo.  Port  Washington,  Nassau,  N.  Y. 

Providence,   R.  I.  Riverside,  Fairfield,  Conn. 

St.  James,  Suffolk,  N.  Y.  South  Norwalk,  Fairfield,  Conn. 

Stamford,   Fairfield,  Conn.  Trenton,  Mercer,  N.  J. 

Utica,  La  Salle,  111.  Valley  Forge,  Chester,  Pa. 

Warsaw,  Benton,  Mo.  West  El  Paso,  Dona,  New  Mexico. 

Yates  City,  Knox,  111. 

New  York  City  Directory 

In  Term  I  your  course  in  CIVICS  included  a  consideration 
of  our  city  government: 

Obtain    the    following    information    in    regard    to    our    city 
government: 

1.  Name  of  the 

a.  Mayor. 

b.  Borough  presidents  of  Manhattan,  Bronx,  Brook- 

lyn, Queens. 

c.  Comptroller. 

2.  Department  of  Correction : 

a.  Where  located. 

b.  Name  of  the  commissioner. 

c.  What  institutions  are  under  his  charge. 

3.  Department  of  Education: 

a.  Where  located. 

b.  Name  of  the  city  superintendent. 

c.  How  many  colleges,  high  schools,  and  elementary 

schools  in  Manhattan  are  under  its  jurisdiction? 

4.  Health  Department: 

a.  Where  located. 

b.  Name  of  the  president. 

5.  Where  do  you  go  to  pay  your  tax  bills? 

6.  Bureau  of  Chief  of  Fire  Department: 

a.  Where  located 

b.  Name  of  the  chief. 


292  OFFICE   PRACTICE 

7.  Bureau  of  Chief  of  Police  Department: 

a.    Name  of  commissioner. 

8.  Names  of  the  members  of  the   Board  of  Estimate  and 
Apportionment. 

9.  Where  are  the  following? 

a.  Custom  House. 

b.  Federal  Reserve  Bank. 

c.  City  Hall. 

d.  Lenox  Library. 

e.  New  York  Clearing  House. 

10.     Indicate  the  addresses  of  the  following: 

Thomas  A.  Rush  William  L.  Ettinger 

John  T.  Nicholson  Elizabeth  Donovan 

Margaret  Cummings  Lillian  Wald 

James  J.  O'Connell  Dr.  Stephen  Wise 

Henry  Miller  Felix  Adler 

Elizabeth  Tierney  Nicholas  Murray  Butler 

James  McCabe   "  Alfred  W.  McCann 

May  Sinnott  Alfred  E.  Smith 

Margaret  O'Connell  John  F.  Hylan 

Dr.  Frank  Crane  Dr.  John  F.  Tildsley 

Grace  Strachan  Forsythe 

Who's  Who  in  America 

Our  Assistant  Manager  wishes  to  obtain  the  following  facts. 
Look  up  same  in  Who's  Who.     Write  a  short  paragraph. 

i.    Theodore  Roosevelt. 

Where  was  he  born? 

What  are  the  titles  of  some  of  the  books  he  wrote? 

When  was  he  commissioner  of  police  in  New  York  City? 

When  did  he  become  governor  of  New  York  Stater 

In  what  year  did  he  become  President  of  the  United  States? 

What  do  you  know  about  the  personality  and  characteristics 

of  the  ex-president? 
In  what  year  did  he  die  and  where  is  he  buried?      (Edition 

1919.) 


STORY  OF  THE  ADDING  MACHINE          293 

2.  Woodrow  Wilson. 

In  what  year  was  he  elected  President  of  the  United  States? 
Name  the  well-known  university  of  which  he  was  president. 
State   any  interesting  facts  which   took   place  during  his 
administration  as  president  of  our  country. 

3.  Look  up  your  favorite  American  author.     How  old  is  he 
or  she? 

Where  does  he  or  she  live? 

Tell  three  interesting  facts  about  his  or  her  life. 
Name  the  titles  of  some  of  the  books  written  by  your 
favorite  author. 

4.  Look  up  and  write  a  paragraph  of  at  least  four  important 
facts  about  each  of  the  following: 

John  D.  Rockefeller  Rodman  L.  Wanamaker 

Walter  Albert  Jessup  Nathan  Straus 

Thomas  W.  Churchill  Homer  S.  Cummings 

William  L.  Ettinger  William  M.  Edwards 

Booth  Tarkington  Morgan  J.  O'Brien 

William  S.  Calder  Alfred  E.  Smith 

Nicholas  Murray  Butler  Henry  Taft 

William  H.  Taft  Dr.  Lyman  Abbott 

Lawrence  Abbott  Franklin  D.  Roosevelt 

Warren  G.  Harding  Calvin  Coolidge 

Blue  Book 

I.  We  want  to  invite  people  of  prominence  to  visit  an  exhibi- 
tion of  merchandise  that  will  be  opened  by  us  in  a  few 
weeks. 

Using  the  Blue  Book,  make  a  memorandum  of  the  names 
of  prominent  people  that  you  will  find  in  the  list  compiled 
by  streets. 


294  OFFICE    PRACTICE 

Select  10  names  of  people  living  on: 
Fifth  Avenue  above  No.  503 
Madison  Avenue  above  No.  25 
Riverside  Drive  above  10  West  72nd  Street 
Irving  Place 
Park  Avenue 
Hamilton  Terrace 
8 ist  Street — i  East  8ist  (East  of  5th  Ave.) 

2.  Write  the  name  and  the  address  of  the  following: 

Le  Roy,  Stuyvesant 
Whitehouse,  Worthington 
Guggenheim,  William 
Gary,  Elbert  H. 
Wormser,  Louis 
Sherman,  William  Watts 
Reid,  Daniel  Gray 
Parson,  Harry  E.   (Mrs.) 
Astor,  Vincent  (Mrs.) 
Gould,  George  (Mrs.) 
McGivney,  Mabel  (Mrs.) 
Vanderlip,  Mr.  &  Mrs.  Frank  A. 
Vanderbilt,  Grace   (Miss) 
Carnegie,  Andrew  (Mrs.) 

3.  Look  through  the  advertisements  and  write  a  paragraph 
stating  style  of  letters  used   (Upper  or  Lower  case),  and 
whether  in  your  judgment  the  advertisement  would  make 
a  good  poster,  and  why.     Use  knowledge  taught  you  by 
your  drawing  teacher. 

4.  Give  the   names   and   addresses,   and   class  of  business  of 
twenty  different  firms  advertising  in  the  Blue  Book. 

5.  Consult  the  theater  diagrams  at  the  back  of  the  book  and 
select  seats  for  parties  of  six  in  each  of  the  following  theatres: 

Astor         Belasco         Booth         Cort         Criterion         Empire 
Globe  Geo.  M.  Cohan 


STORY  OF  THE  ADDING   MACHINE          295 

Select  and  decide  upon  the  date,  performance  (matinee  or 
evening),  and  telephone  the  box  office  to  reserve  tickets,  stat- 
ing your  check  will  be  sent  by  mail. 

Roget's  Thesaurus 

Definition: 

In  a  Dictionary,  the  word  is  given,  followed  by  the  idea  it 
is  intended  to  convey. 

In  the  Thesaurus,  the  idea  is  given,  followed  by  the  word 
it  is  intended  to  convey. 

How  to  use  it: 

Note  index  at  back  of  book. 

Alongside  each  word  will  be  found  a  number. 

These  numbers  refer  to  the  section  or  paragraph  (not  page) 

in  which  these  words  will  be  found. 

For  exam-pie: 

The  number  664  is  to  be  found  alongside  the  word  "safety." 
In  section  664  will  be  found  words  expressing  the  ideas. 
In  section  665  opposite  will  be  found  words  expressing  the 
opposite  ideas  of  safety. 

After  each  word  listed  below,  write  five  words  expressing 
the  same  idea. 


safety 

difficulty 

equality 

remainder 

beginning 

truth 

disorder 

agreement 

balcony 

change 

assemblage 

resistance 

pursuit 

success 

sequence 

beauty 

After  each  word  listed  above,  write  five  words  expressing 
the  opposite  idea.*  After  each  word  indicate  the  part  of 
speech  to  which  it  belongs. 

The  opening  pages  of  these  books  contain: 

a.  Editor's  preface. 

b.  Introduction. 


296  OFFICE   PRACTICE 

c.  Plan  of  classification.     (Read  this  carefully.) 

d.  Note  class  2  (Nos.  180  to  315.) 

e.  Define   word    "space."     (Use   regular   dictionary   for 

this  purpose.) 

f.  Select  from  the  Thesaurus  20  words  relating  to  space, 

as  follows: 

5  words  relating  to  existence  in  space. 

5  '  linear  measure. 

S       "  "    general  form. 

5  '    motion  in  general. 

Assignment: 

1.  Word:    ship — {noun). 

Business  words: 

Transport — merchant  ship — packet — 'liner — 'lighter. 

Look  in  the  Dictionary  for  the  exact  meaning  of  each  of 

these  words. 

Write  one  sentence  containing  each,  showing  the  definitior 

of  each  word. 

Find  differences  between  schooner,  cutter,  barge,  tug. 

Write  uses  of  ferryboat,  canal  boat,  gig,  jolly  boat,  raft. 

What  is  a  coracle,  a  gondola,  a  canoe,  a  launch,  a  yacht? 

Have  you  had  any  of  the  above  words  in  your  reading  in 

the  English  Department  classes?     Where?     Which  lines  in 

your  reading  would  require  a  knowledge  of  the  above  words  ? 

2.  Find  seven  words  that  mean  a  ivriter. 

Give  definitions  (using  the  dictionary  if  necessary)  of  each, 
bringing  out  clearly  the  differences  in  meaning.  For  in- 
stance, tell  just  how  a  stenographer  differs  from  a  typist, 
both  being  writers. 

3.  Suppose  that  you  work  for  a  corporation.     You  wish  to  find 
out    about    the   corporation.     Look    up    the   word.     What 
other  words  mean  the  same  as  a  corporation?     Find  other 


STORY  OF  THE  ADDING  MACHINE          297 

words  for  firms.     What  is  a  syndicate?     An  alliance?     A 
trade  union?     Find  other  words  for  club. 

The  World  Almanac 

Postal  Information: 

1.  What  are  the  rates  of  postage  on  letters  to  Canada,  Eng- 
land, Dutch  West  Indies,  and  Newfoundland? 

2.  How  do  the  rates  to  other  countries  differ? 

3.  What  are  the  rates  on  printed  matter  and  newspapers  to 
Canada,  Panama,  and  Cuba? 

4.  What  are  the  rates  on  postal  cards  to  all  countries? 

5.  What  are  the  rates  on  samples  of  merchandise? 

6.  What  are  the  International  Parcel  Post  rates? 

7.  State  the  postal  regulations  in  reference  to  postal  savings. 

8.  State  the  postal  regulations  in  reference  to  sending  sealed 
packages   through   the  mails. 

9.  State  the  postal  regulations  in  reference  to  the  delivery  of 
pension   checks,  prisoners'  mail,  husband's  or  wife's  and 
minor's  mail. 

10.     What  should  a  person  do  if  he  received  a  letter  not  ad- 
dressed to  him? 

Vertical  File 

Card  Index  Filing 

1.  Arrange  the  alphabetical  guide  cards. 

2.  Select  about  25  cards. 

1.  Arrange  them  alphabetically. 

2.  File  all  A's  back  of  guide  card  A,  B's  back  of  guide 
card  B. 

3.  Take  all  A's  and  arrange  them  alphabetically. 

4.  Place  back  of  guide  card  A. 

5.  Do  the  same  with  each  letter  of  alphabetical  list, 
using  the  cards  in  the  small  drawer. 


298  OFFICE   PRACTICE 

3.  Arrange  the  guide  cards  for  Numeric  (numbers),  Subject 
(kind  of  business),  and  Geographic  (city  and  state  Filing). 

File  a  card  Alphabetically. 

According  to  the  subject. 
"     "     "      Geographically. 
"     "     "      Numerically. 

4.  Arrange  all  the  cards  behind  each  guide  card  Alphabetically. 
On  your  Memorandum  write: 


Name  of  Firm 

Address  of  Firm 

Business 

File  Number  of  Firm 

Incoming  Mail 

1.  Arrange  all  the  mail  received  this  A.  M.     Cut  each  envelope 
as  directed  in  the  text. 

2.  Adjust  the  date  stamp  and  stamp  all  letters  in  the  upper 
right-hand  corner  with  the  correct  date. 

3.  If  any  letter  is  to  be  called  to  the  attention  of  any  special 
member  of  our  firm,  underline  his  name  with  a  red  pencil. 

4.  Underline  the  file  number,  name,  or  subject  or  address  in 
red  pencil  for  filing  purposes. 

5.  If  letters  are  to  be  filed  alphabetically  underline  the  name 
only. 

6.  Distribute  letters  to  the  various  departments  as  explained 
in  the  text. 

7.  When  letters  are  returned  from  the  various  departments  to 
the    filing    department    file    them    in    the    vertical    filing 
cabinet. 

8.  On  your  memorandum  write  the  name,  address,   and  the 
date  of  each  letter.     As  a  check  on  your  ability  to  file 
letters  also  write  the  letter  of  the  guide  card  behind  which 
you  are  to  file  each  letter. 


STORY  OF  THE  ADDING   MACHINE          299 

Outgoing  Mail 

1.  Collect  the  mail  which  is  ready  to  be  sent  to  the  post  office. 

2.  Fold  each  letter,  and  on  the  last  fold  write  the  name,  city, 
and  the  state  (the  address)  of  the  firm  to  whom  the  letter 
.is  to  be  sent. 

3.  Place  a  stamp  or  the  proper  amount  of  postage  in  the  upper 
right-hand  corner  of  each  letter  or  package. 

4.  Write  the  amount  of  postage  on  the  stamp. 

5.  Weigh  the  letter  or  package  to  determine  the  amount  of 
postage  due. 

6.  Before  folding  the  letter,  examine  each  letter  or  package  for 
signature  and  any  enclosure. 

7.  Place  all  letters  when  ready  for  the  post  office  in  the  Out- 
going Mail  basket. 

8.  On  your  memorandum  write  the  name,  address,  and  the 
date  of  all  letters  sent  out  from  our  outgoing  mail  depart- 
ment. 

9.  Send  the  carbon  copies  to  the  filing  department. 

An  Act  for  Codifying  the  Laws  relating  to  the  Sale  of  Goods 

(20  February,   1894) 
Formation  of  the  Contract 

Contract  of  Sale 

i.  (i)  A  contract  of  sale  of  goods  is  a  contract  whereby  the 
seller  transfers  or  agrees  to  transfer  the  property  in  goods 
to  the  buyer  for  a  money  consideration,  called  the  price. 
There  may  be  a  contract  of  sale  between  one  part  owner 
and  another. 

(2)  A  contract  of  sale  may  be  absolute  or  conditional. 

(3)  Where,  under  a  contract  of  sale,  the  property  in  the 
goods  is  to  be  transferred  from  the  seller  to  the  buyer  the 
contract  is  called  a  sale;    but  where  the  transfer  of  the 
property  in  the  goods  is  to  take  place  at  a  future  time,  or 


300  OFFICE    PRACTICE 

is  subject  to  some  condition  thereafter  to  be  fulfilled,  the 
contract  is  called  an  agreement  to  sell. 
(4)  An  agreement  to  sell   becomes  a  sale  when  the  time 
elapses   or   the   conditions   are   fulfilled   subject   to   which 
the  property  in  the  goods  is  to  be  transferred. 

2.  Capacity  to  buy  and  sell  is  regulated  by  the  general  law 
concerning  capacity  to  contract,  and  to  transfer  and  acquire 
property;    provided  that  where  necessaries  are  sold  and 
delivered  to  infant,  or  minor,  or  to  a  person  who  by  reason 
of  mental  incapacity  is  incompetent  to  contract,  he  must 
pay  a  reasonable  price  therefor.     Necessaries  in  this  sec- 
tion means  goods  suitable  to  the  condition  in  life  of  such 
infant  or  other  person,  and  to  his  actual  requirements  at 
the  time  of  the  sale  and  delivery. 

Formalities  of  the  Contract 

3.  Subject  to  the  provisions  of  this  act  and  of  any  statute  in 
that  behalf,  a  contract  of  sale  may  be  made  in  writing 
(either  with  or  without  seal)  or  by  word  of  mouth,  or 
partly  in  writing  and  partly  by  word  of  mouth,  or  may 
be  implied  from  the  conduct  of  the  parties. 

4.  (i)  A  contract  for  the  sale  of  any  goods  of  the  value  of 
ten  pounds  (about  ($50)  or  upwards  shall  not  be  enforce- 
able by  action  unless  the  buyer  shall  accept  part  of  the 
goods  so  sold  and  actually  receive  the  same,  or  give  some- 
thing in  earnest  to  bind  the  contract  or  in  part  payment 
or  unless  some  note  or  memorandum   in  writing  of  the 
contract  be  made  and  signed  by  the  party  to  be  charged  or 
his  agent  in  that  behalf. 

(2)  The  provision  of  this  section  apply  to  every  such  con- 
tract notwithstanding  that  the  goods  may  be  intended  to 
be  delivered  at  some  future  time,  or  may  not  at  the  time 
of  such  contract  be  actually  made,  procured,  or  provided, 
or  fit  or  ready  for  delivery,  or  some  act  requisite  for  the 


STORY  OF  THE  ADDING   MACHINE          301 

making  or  completing  thereof,  or  rendering  the  same  fit 
for  delivery. 

(3)  There  is  an  acceptance  of  goods  within  the  meaning 
of  this  section  when  the  buyer  does  any  act  in  relation  to 
the  goods  which  recognizes  a  pre-existing  contract  of  the 
sale,  whether  there  be  an  acceptance  in  performance  of 
the  contract  or  not. 

Subject  Matter  of  the  Contract 

5.  (i)  The  goods  which  form  the  subject  of  a  contract  of  sale 
may  be  either  existing  goods,  owned  or  possessed  by  the 
seller,  or  goods  to  be  manufactured  or  acquired  b>   the 
seller  after  the  making  of  the  contract  of  sale,  in  this  act 
called  "future  goods." 

(2)  There  may  be  a  contract  for  the  sale  of  goods,  the 
acquisition  of  which  by  the  seller  depends  upon  a  contin- 
gency which  may  or  may  not  happen. 

(3)  Where  by  a  contract  of  sale  the  seller  purports  to  effect 
a  present  sale  of  future  goods,  the  contract  operates  as  an 
agreement  to  sell  the  goods. 

6.  Where  there  is  a  contract  for  the  sale  of  specific  goods 
and  the  goods  without  the  knowledge  of  the  seller  have 
perished  at  the  time  when  the  contract  is  made,  the  con- 
tract is  void. 

7.  Where  there  is  an  agreement  to  sell  specific  goods,  and 
subsequently  the  goods,  without  any  fault  on  the  part  of 
the  seller  or  buyer,  perish  before  the  risk  passes  to     the 
buyer,  the  agreement  is  thereby  voided. 

The  Price 

8.  (i)  The  price  in  a  contract  of  sale  may  be  fixed  by  the 
contract  or  may  be  left  to  be  fixed  in  manner  thereby 
agreed,  or  may  be  determined  by  the  course  of  dealing 
between  the  parties. 

(2)   Where  the  price  is  not  determined  in  accordance  with 


302  OFFICE   PRACTICE 

the  foregoing  provisions  the  buyer  must  pay  a  reasonable 
price,  What  is  a  reasonable  price  is  a  question  of  fact 
dependent  on  the  circumstances  of  each  particular  case. 
9.  (i)  Where  there  is  an  agreement  to  sell  goods  on  the 
terms  that  the  price  is  to  be  fixed  by  the  valuation  of  a 
third  party  and  such  third  party  cannot  or  does  not  make 
such  valuation,  the  agreement  is  voided;  provided  that 
if  the  goods  or  any  part  thereof  have  been  delivered  to 
and  appropriated  by  the  buyer  he  must  pay  a  reasonable 
price  therefor. 

(2)  Where  such  third  party  is  prevented  from  making  the 
valuation  by  the  fault  of  the  seller  or  buyer,  the  party  not 
in  fault  may  maintain  an  action  for  damages  against  the 
party  in  fault. 

Conditions  and  Warranties 

10.  (i)  Unless  a  different  intention  appears  from  the  terms  of 
the  contract  stipulations  as  to  time  of  payment  are  not 
deemed  to  be  of  the  essence  of  a  contract  of  sale.  Whether 
any  other  stipulation  as  to  time  is  of  the  essence  of  the 
contract  or  not  depends  on  the  terms  of  the  contract. 

(2)  In   a  contract  of  sale   "month"   means   prima  facie 
calendar  month. 

12.  In  a  contract  of  sale,  unless  the  circumstance  of  the  con- 
tract are  such  as  to  show  a  different  intention  there  is: 
(i)  An  implied  condition  on  the  part  of  the  seller,  that  in 
the  case  of  a  sale  he  has  a  right  to  sell  the  goods,  and  that 
in  the  case  of  an  agreement  to  sell  he  will  have  a  right  to 
sell  the  goods  at  the  time  when  the  property  is  to  pass. 

(3)  An  implied  warranty  that  the  goods  shall  be  free  from 
any  charge  or  encumbrance  in  favor  of  any  third  party, 
not  declared  or  known  to  the  buyer  before  or  at  the  time 
when  the  contract  is  made. 

13.  When  there  is  a  contract  for  the  sale  of  goods  by  descrip- 


STORY  OF  THE  ADDING  MACHINE          303 

tion,  there  is  an  implied  condition  that  the  goods  shall 
correspond  with  the  description;  and  if  the  sale  is  by 
sample  as  well  as  by  description,  it  is  not  sufficient  that 
the  bulk  of  the  goods  corresponds  with  the  sample  if  the 
goods  do  not  also  correspond  with  the  description. 

14.  Implied  conditions  as  to  quality  or  fitness. 

(1)  Where  the  buyer,  expressly  or  by  implication,  makes 
known  to  the  seller  the  particular  purpose  for  which  the 
goods  are  required,  so  as  to  show  that  the  buyer  relies  on 
the  seller's  skill  or  judgment  and  the  goods  are  of  a  de- 
scription which  it  is  in  the  course  of  the  seller's  business  to 
supply  (whether  he  be  the  manufacturer  or  not)  there  is 
an  implied  condition  that  the  goods  shall  be  reasonably  fit 
for  such  purpose,  provided  that  in  the  case  of  a  contract 
for  the  sale  of  a  specified  article  under  its  patent  or  other 
trade  name,  there  is  no  impled  condition  as  to  its  fitness 
for  any  particular  purpose: 

(2)  Where  goods  are  bought  by  description  from  a  seller 
who  deals  in  goods  of  that  description  (whether  he  be  the 
manufacturer  or  not)  there  is  an  implied  condition  that  the 
goods  shall  be  of  merchantable  quality;    provided  that  if 
the  buyer  has  examined  the  goods,  there  shall  be  no  im- 
plied condition  as  regards  defects  which  such  examination 
ought  to  have  revealed. 

(3)  An  implied  warranty  or  condition  as  to  quality  or  fit- 
ness for  a  particular  purpose  may  be  annexed  by  the  usage 
of  trade. 

(4)  An  expressed  warranty  or  condition  does  not  negative 
a  warranty  or  condition  implied  by  this  Act  unless  incon- 
sistent therewith. 

Sale  by  Sample 

15.  (2)  In  the  case  of  a  contract  for  sale  by  sample: 

(a)  There  is  an  implied  condition  that  the  bulk  shall  cor- 
respond with  the  sample  in  quality: 


304  OFFICE   PRACTICE 

(b)  There  is  an   implied  condition  that  the  buyer  shall 
have  a  reasonable  opportunity  of  comparing  the  bulk  with 
the  sample: 

(c)  There  is  an   implied  condition  that  the  goods,   shall 
be  free  from  any  defect,  rendering  them  unmerchantable, 
which  would  not  be  apparent  on  reasonable  examination 
of  the  sample. 

Transfer  of  Title 

22.  (i)  Where  goods  are  sold  in  the  market  according  to  the 
usage  of  the  market,  the  buyer  acquires  a  good  title  to  the 
goods,  provided  he  buys  them  in  good  faith  and  without 
notice  of  any  defect  or  want  of  title  on  the  part  of  the 
seller. 

24.  (i)  Where  goods  have  been  stolen  and  the  offender  is  pros- 
ecuted to  conviction,  the  property  in  the  goods  so  stolen 
revests  in  the  person  who  was  the  owner  of  the  goods, 
or  his  personal  representative,  notwithstanding  any  inter- 
mediate dealing  with  them,  whether  by  sale  in  the  market 
or  otherwise. 

Performance  of  the  Contract  of  Sale 

27.  It  is  the  duty  of  the  seller  to  deliver  the  goods,  and  of  the 
buyer  to  accept  and  pay  for  them,  in  accordance  with  the 
terms  of  the  contract  of  the  sale. 

28.  Unless  otherwise  agreed,  delivery  of  the  goods  and  pay- 
ment of  the  price   are  concurrent  conditions,   that  is  to 
say,  the  seller  must  be  ready  and  willing  to  give  possession 
of  the  goods  to  the  buyer  in  exchange  for  the  price,  and 
the  buyer  must  be  ready  and  willing  to  pay  the  price  in 
exchange  for  the  possession  of  the  goods. 

35.  The  buyer  is  deemed  to  have  accepted  the  goods  when  he 
intimates  to  the  seller  that  he  has  accepted  them,  or  when 
the  goods  have  been  delivered  to  him,  and  he  does  any 


STORY  OF  THE  ADDING   MACHINE          305 

act  in  relation  to  them  which  is  inconsistent  with  the 
ownership  of  the  seller,  or  when  after  the  lapse  of  a  reason- 
able time,  he  retains  the  goods  without  intimating  to  the 
seller  that  he  has  rejected  them. 

Rights  of  Unpaid  Seller  Against  the  Goods 

39.     (i) — (a)  A  lien  on  the  goods  or  right  to  retain  them  for 
the  price  while  he  is  in  possession  of  them. 
(b)   In  case  of  the  insolvency  of  the  buyer,  a  right  of  stop- 
ping the  goods  in  transitu  after  he  has  parted  with  the 
possession   of  them. 

43.  (i)  The  unpaid  seller  of  goods  loses  his  lien  or  right  of 
retention  thereon — • 

(a)  When  he  delivers  the  goods  to  a  carrier  or  other  bailee 
or  custodier  for  the  purpose  of  transmission  to  the  buyer 
without  reserving  the  right  of  disposal  of  the  goods: 

(b)  When   the   buyer  or  his   agent  lawfully  obtains  pos- 
session of  the  goods. 

Stoppage  in   Transitu 

44.  Subject  to  the  provisions  of  this  Act,  when  the  buyer  of 
goods  becomes  insolvent,  the  unpaid  seller  who  had    parted 
with  the  possession  of  the  goods  has  the  right  of  stopping 
them  in  transitu,  that  is  to  say,  he  may  resume  posesssion 
of  the  goods  as  long  as  they  are  in  course  of  transit,  and 
may  retain  them  until  payment  or  tender  of  the  price. 

45.  (i)   Goods  are  deemed  to  be  in  course  of  transit  from  the 
time  when  they  are  delivered  to  a  carrier  by  land  or  water 
or  other  bailee  or  custodier  for  the  purpose  of  transmission 
to  the  buyer,  until  the  buyer,  or  his  agent  in  that  behalf, 
takes  delivery  of  them  from  such  carrier  or  other  bailee 
or   custodier. 

(2)  If  a  buyer  or  his  agent  in  that  behalf  obtains  delivery 
of  the  goods  before  their  arrival  at  the  appointed  destina- 
tion the  transit  is  at  an  end. 


306  OFFICE   PRACTICE 

58.     In  case  of  a  sale  by  Auction. 

(2)  A  sale  by  auction  is  complete  when  the  auctioneer 

announces  its  completion  by  the  fall  of  the  hammer,  or  in 

other  customary  manner.     Until  such   announcement  is 

made  any  bidder  may  retract  his  bid. 
62.     "Buyer"  means  a  person  who  buys  or  agrees  to  buy  goods. 

"Delivery"  means  voluntary  transfer  of  possessions  from 

one  person  to  another. 

"Quality  of  Goods"  includes  their  state  or  condition. 

"Sale"  includes  a  bargain  and  sale  as  well  as  a  sale  and 

delivery. 

"Seller"  means  a  person  who  sells  or  agrees  to  sell  goods. 

"Specific  Goods"  means  goods  identified  and  agreed  upon 

at  the  time  a  contract  of  sale  is  made. 

"Warranty"  means  an  agreement  with  reference  to  goods 

which  are  the  subject  of  a  contract  of  sale,  the  breach  of 

which  gives  rise  to  a  claim  for  damages,  but  not  to  a  right 

to  reject  the  goods  and  treat  the  contract  as  repudiated. 

(2)  A  thing  is  deemed  to  be  done  "in  good  faith"  within 
the  meaning  of  this  Act  when  it  is  in  fact  done  honestly, 
whether  it  be  done  negligently  or  not. 

(3)  A  persons  is  deemed  to  be  insolvent  within  the  meaning 
of  this  Act  who  either  has  ceased  to  pay  his  debts  in  the 
ordinary  course  of  business,  or  cannot  pay  his  debts  as  they 
become  due,  whether  he  has  committed  an  act  of  bank- 
ruptcy or  not,  and  whether  he  become  a  notour1  bankrupt 
or  not. 

(4)  Goods  are  in  a  "deliverable  state"  within  the  mean- 
ing of  this  Act  when  they  are  in  such   a  state  that  the 
buyer  would  under  the  contract  be  bound  to  take  delivery 
of  them. 

64.     This  Act  may  be  cited  as  the  Sale  of  Goods  Act,  1893. 
This  statute  has  been  re-enacted  with  modifications  in  al- 


(Scot)  Well-known. 


STORY  OF  THE  ADDING  MACHINE 


307 


most  every  state  of  the  United  States.  Its  provisions  and  the 
language  in  which  they  are  clothed,  may  vary,  but  in  substance, 
it  is  almost  identical,  in  all  of  them  in  respect  of  sales  and  agree- 
ments to  sell. 

The  price  (ten  pounds)  about  $50,  changes  in  different  states, 
ranging  from  $30  to  $300,  except  in  Iowa  and  Florida,  where 
the  amount  is  unlimited;  $30  is  the  amount  in  Maine,  Missouri, 
New  Jersey,  and  Arkansas,  and  $300  in  Utah  and  Montana. 
In  most  of  the  other  states  of  the  United  States  the  limit  is 
$50  (see  Appendix — Gano's  Essentials  of  Business  Law). 

COMMERCIAL   ABBREVIATIONS    AND 
GENERAL    BUSINESS    TERMS 


@ — at  or  to 

Ai — first  class 

acct.  or  a/c — account 

acct.  sales — account  of  sales 

adv.  or  ad. — advertisement 

agt. — agent 

A.  M. — before  noon 

Master  of  Arts 
amt. — amount 
b/b— bill  book 
bbl. — barrel 
bdl. — bundle 
b/1— bill  of  lading 
b/s— bill  of  sale 

B.  O. — Buyer's  option 
bu. — bushel 

bxs. — boxes 

ck.— check 

c/o — care  of 

Co. — company  or  county 

c.  i.  f. — cost,  insurance,  and  freight 

c.  o.  d. — collect  on  delivery 

com. — commission 

Cr. — credit  or  creditor 

c.  w.  o. — cash  with  order 

cwt. — hundredweight 

dep. — deposit 

disc. — discount 


do. — ditto 
doz. — dozen 
$— dollar  (s) 

Dr. — debit,  debtor,  or  Doctor 
E.  E. — errors  excepted 
E.  &  O.  E. — errors  and  omissions  ex- 
cepted 

e.  g. — for  example 
etc. — and  so  forth 
ex. — example 
exch. — exchange 

f.  o.  b. — (point  named,  as  N.  Y.  C.) 

free  on  board  cars  or  lighters 
at  the  point  named 
f.  o.  b. — (point   on   seaboard   named) 
all  freight  charges  paid  from 
forwarding  point  to  port  on 
seaboard 
f.  o.  b  cars. — (port  named  L.  C.  L.) 

less  than  a  carload  lot 
f.  o.  b.  cars — (within  lighterage  limits) 

lighterage  free 

f.  o.  b.  on  vessel — (port  named)  all  ex- 
penses up  to  and  in- 
cluding delivery  of  the 
goods  upon  the  over- 
seas vessel  or  steamer 
at  a  named  port 


308 


OFFICE   PRACTICE 


f.  o.  b.  vessel — (port  named)  delivery 
of  goods  free  of  charges 
alongside  overseas  ves- 
sel or  steamer  and 
within  reach  of  its 
loading  tackle 

c.  &  f. — (named  foreign  port)  as  Lon- 
don, England,  seller  willing 
to  pay  transportation  charges 
or  the  cost  and  freight  to  a 
foreign  point  of  delivery 

fol. — folio 

ford. — forward 

frt. — freight 

ft. — foot  (feet) 

gal. — gallon 

gro. — gross 

hhd. — hogshead 

I.  O.  U. — I  owe  you 

in.  or  " — inches 

i.e. — that  is 

ins. — insurance 

inst. — instant;   the  present  montn 

int. — interest 

inv. — invoice 

invy. — inventory 

Ib. — pound 

L  &  G — loss  and  gain 

Messrs. — Gentlemen 

mdse. — merchandise 


mem. — memorandum 

mo. — month 

$ — number  (if  written  before  a  figure) 

point  (if  written  after  a  figure) 
N.  B. — take  notice 
O.  K. — correct 
oz. — ounce 

c/c — Per  cent 

pcs. — pieces 

pd. — paid 

per — by 

pkg— package 

p.— page 

P.  O. — post  office 

P.  S. — postscript 

rec'd — received 

rect. — receipt 

R.  F.  D. — rural  free  delivery 

R.  R.— railroad 

shipt.- — shipment 

S.  S. — steamship 

Str. — steamer 

ult. — ultimo,  or  last  month 

U.  S.  M.— United  States  Mail 

via — by  way  of 

viz — to  wit;  namely 

vs. — against 

w/b — waybill 

yd. — yard 

yr. — year 


THE    END 


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. 

MAY  2  1938 

JIJN    22  1930 

MDIT  LIBRARY  USt.  J 

PR  20  '90 

NKU1 

LD  21-95m-7,'37 

YB   I86JO 


[VERSITY  OF  CALIFORNIA  LIBRARY 

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